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v1GLOBAL
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| 1 | --- |
| 2 | name: fatca-crs-automatic-exchange |
| 3 | description: > |
| 4 | Use this skill whenever a Financial Institution (FI), trustee, or account holder asks about automatic exchange of financial account information. Trigger on phrases like "FATCA", "CRS", "Common Reporting Standard", "automatic exchange of information", "AEOI", "Form W-9", "Form W-8BEN", "Form W-8BEN-E", "self-certification", "Reportable Account", "Reportable Person", "Controlling Person", "passive NFE", "active NFFE", "GIIN", "responsible officer certification", "FATCA 8966", "FBAR", "Form 8938", "DAC2", "CARF", or any question about whether a financial account, entity, or person is reportable for AEOI purposes. Covers the US Foreign Account Tax Compliance Act (FATCA — IRC §1471-1474 and Treasury Regulations §§1.1471-1.1474, intergovernmental agreements Model 1 and Model 2), the OECD Common Reporting Standard (CRS — published 2014, updated 2023 with the Crypto-Asset Reporting Framework / CARF and CRS 2.0 amendments), and the EU's CRS implementation under DAC2 (Council Directive 2014/107/EU). Does NOT cover: FBAR (FinCEN 114) which is a US-only beneficial-owner disclosure; Form 8938 individual reporting; ultimate-beneficial-ownership (UBO) registers under EU AMLD; or the OECD MDR on CRS Avoidance Arrangements (see dac6-mdr-reportable-arrangements). ALWAYS read this skill before classifying an account as reportable or determining due diligence obligations. |
| 5 | version: 0.1 |
| 6 | jurisdiction: GLOBAL |
| 7 | tax_year: 2025 |
| 8 | category: cross-border |
| 9 | depends_on: |
| 10 | - cross-border-workflow-base |
| 11 | verified_by: pending |
| 12 | --- |
| 13 | |
| 14 | # FATCA / CRS / DAC2 — Automatic Exchange of Financial Account Information v0.1 |
| 15 | |
| 16 | ## What this file is |
| 17 | |
| 18 | **This file is a content skill that loads on top of `cross-border-workflow-base`.** It implements three overlapping AEOI regimes: |
| 19 | |
| 20 | - **FATCA (United States)** — IRC §1471-1474 and Treasury Regulations, with bilateral Intergovernmental Agreements (IGAs Model 1A, 1B, and Model 2) signed with 100+ jurisdictions. |
| 21 | - **CRS (OECD Common Reporting Standard)** — Multilateral Competent Authority Agreement (MCAA-CRS) and bilateral Competent Authority Agreements; ~120 committed jurisdictions; first exchanges 2017 (early adopters) and 2018 (rest). |
| 22 | - **DAC2 (EU CRS implementation)** — Council Directive 2014/107/EU; mandatory CRS adoption by all 27 EU Member States; first exchange 2017. |
| 23 | |
| 24 | **Tax year coverage.** Current for **reportable period 2025** (information collected in 2025, exchanged in 2026), reflecting the **CRS 2.0 amendments** adopted by the OECD in 2023 (in force for reporting periods 2026+ but with many jurisdictions adopting earlier), and the **Crypto-Asset Reporting Framework (CARF)** for crypto reporting (first exchanges 2027 for most committed jurisdictions, 2026 for early adopters). |
| 25 | |
| 26 | **The reviewer is the customer of this output.** FATCA / CRS classification of entities (e.g., Financial Institution vs Non-Financial Entity, Active vs Passive) is fact-specific and carries strict liability for misclassification. Every output must be reviewed by a credentialed practitioner (typically a Big 4 international tax / AEOI specialist or in-house FATCA Responsible Officer) before submission of a self-certification or filing of a return. |
| 27 | |
| 28 | --- |
| 29 | |
| 30 | ## Section 1 — Scope statement |
| 31 | |
| 32 | This skill covers: |
| 33 | |
| 34 | - **Entity classification** under FATCA, CRS, and DAC2. |
| 35 | - **Due diligence procedures** for new accounts (self-certification, reasonableness checks) and pre-existing accounts (indicia search, electronic search, paper-record search, residency address tests, curing procedures). |
| 36 | - **Account identification** — Financial Account types (Depository, Custodial, Cash Value Insurance, Annuity Contracts, Equity/Debt Interests), Reportable Accounts, Documented Accounts, Excluded Accounts. |
| 37 | - **Reportable Person and Controlling Person identification**. |
| 38 | - **Reporting mechanics** — XML schema, filing portals, deadlines, penalty exposure. |
| 39 | - **Withholding obligations** under FATCA (30% withholdable payments under §1471(a) and §1472(a)). |
| 40 | - **CARF / Crypto reporting** mechanics under the OECD framework and EU implementation in DAC8. |
| 41 | - **CRS 2.0 amendments** — broadened definition of Investment Entity, expanded due diligence on Controlling Persons, anti-avoidance test for joint accounts. |
| 42 | |
| 43 | This skill does NOT cover: |
| 44 | |
| 45 | - **FBAR (FinCEN 114)** — see `us-fbar-individual.md` (forthcoming). |
| 46 | - **Form 8938 (Statement of Specified Foreign Financial Assets)** — see US federal individual skills. |
| 47 | - **Beneficial ownership registers** under EU AMLD5/6 or the US Corporate Transparency Act — see `us-fincen-cta-boi.md` and `eu-amld-boi.md` (forthcoming). |
| 48 | - **OECD MDR on CRS Avoidance Arrangements** — see `dac6-mdr-reportable-arrangements.md`. |
| 49 | - **Anti-money-laundering KYC requirements** beyond CRS due diligence overlap. |
| 50 | |
| 51 | --- |
| 52 | |
| 53 | ## Section 2 — Filing requirements |
| 54 | |
| 55 | ### FATCA — who reports |
| 56 | |
| 57 | **[T1] Reporting Financial Institutions (FIs):** |
| 58 | |
| 59 | 1. **US FIs** report Foreign Account Holders to the IRS (Form 8966 for chapter 4) — payer-side reporting on the US payer. |
| 60 | 2. **Foreign FIs (FFIs)** in Model 1 IGA jurisdictions report US account holders to their local tax authority, which exchanges with the IRS. |
| 61 | 3. **FFIs in Model 2 IGA jurisdictions** report US account holders directly to the IRS under FATCA Form 8966, plus supplemental local reporting in some jurisdictions. |
| 62 | 4. **Non-IGA FFIs** that have entered into an FFI Agreement with the IRS report directly to the IRS. |
| 63 | 5. **Non-participating FFIs (NPFFIs)** face 30% withholding on US-source withholdable payments. |
| 64 | |
| 65 | ### CRS / DAC2 — who reports |
| 66 | |
| 67 | **[T1] Reporting FIs** in a CRS-committed jurisdiction identify and report **Reportable Accounts** held by **Reportable Persons** (tax residents of any other CRS jurisdiction). Reporting is to the local tax authority, which exchanges with each Reportable Jurisdiction. |
| 68 | |
| 69 | ### Deadlines (illustrative; verify per jurisdiction) |
| 70 | |
| 71 | | Filing | Deadline | Source | |
| 72 | |---|---|---| |
| 73 | | FATCA Form 8966 — US FIs | 31 March following reportable year | Treas. Reg. §1.1474-1(d)(1) | |
| 74 | | FATCA Form 8966 — Model 2 FFIs | 31 March (extended deadlines under IGA) | IGA Article 3 | |
| 75 | | FATCA Model 1 — to local tax authority | National deadline (varies; usually 30 June or 31 July) | National AEOI rules | |
| 76 | | CRS — to local tax authority | National deadline (e.g., 31 May Germany; 31 May UK; 30 June France; 31 May Australia; 31 May Singapore) | National AEOI rules | |
| 77 | | Late or non-filing penalty | Varies widely (e.g., UK: GBP 300 per failure plus up to GBP 60/day; Germany: up to EUR 50,000; Singapore: SGD 5,000 fine and/or 12 months imprisonment) | National AEOI rules | |
| 78 | |
| 79 | ### What to report (FATCA) |
| 80 | |
| 81 | **[T1] Article 3 IGA / §1.1474-1(i) Treas. Reg.:** |
| 82 | |
| 83 | 1. Name, address, US TIN of each Specified US Person (or for Controlling Persons of a Passive NFFE that is a US Specified Person, the Controlling Person details) |
| 84 | 2. Account number |
| 85 | 3. Name and identifying number (GIIN) of the Reporting FI |
| 86 | 4. Account balance or value as of end of calendar year (or other reporting period) |
| 87 | 5. **Custodial Accounts:** total gross interest, dividends, other income, and gross proceeds from sale or redemption |
| 88 | 6. **Depository Accounts:** total gross interest |
| 89 | 7. **Other accounts:** total gross amount paid or credited to the account holder |
| 90 | |
| 91 | ### What to report (CRS) |
| 92 | |
| 93 | **[T1] Section I CRS:** |
| 94 | |
| 95 | 1. Name, address, jurisdiction(s) of residence, TIN(s), date and place of birth of each Reportable Person (and each Controlling Person of a Passive NFE that is reportable) |
| 96 | 2. Account number |
| 97 | 3. Name and identifying number of Reporting FI |
| 98 | 4. Account balance/value as of end of relevant calendar year (or, if closed, the closure) |
| 99 | 5. **Custodial Accounts:** total gross interest, dividends, other income generated, gross proceeds from sale or redemption |
| 100 | 6. **Depository Accounts:** total gross interest paid or credited |
| 101 | 7. **Other accounts:** total gross amount paid or credited including aggregate amount of redemption payments |
| 102 | |
| 103 | --- |
| 104 | |
| 105 | ## Section 3 — Entity classification |
| 106 | |
| 107 | ### Step 1 — Is the entity a Financial Institution (FI)? |
| 108 | |
| 109 | **[T1] An FI is any one of four types (CRS §VIII(A) / FATCA §1.1471-5(e)):** |
| 110 | |
| 111 | | Type | Definition | |
| 112 | |---|---| |
| 113 | | **Custodial Institution** | An entity that holds, as a substantial portion of its business (≥20% of gross income test over 3 years), Financial Assets for the account of others | |
| 114 | | **Depository Institution** | Accepts deposits in the ordinary course of a banking or similar business | |
| 115 | | **Investment Entity** | Two limbs: (a) primarily conducts as a business managed by an FI one or more of: trading in money market / FX / interest rate / index / transferable securities / commodity futures, individual or collective portfolio management; OR (b) gross income primarily attributable (≥50%) to investing, reinvesting, or trading in Financial Assets and the entity is managed by another FI (the "professionally managed" test) | |
| 116 | | **Specified Insurance Company** | An insurance company (or holding company of an insurance company) that issues or is obligated to make payments on Cash Value Insurance Contracts or Annuity Contracts | |
| 117 | |
| 118 | **[T1] CRS 2.0 broadening (2023 OECD amendments, in force 2026+):** |
| 119 | - Investment Entity definition expanded to capture entities where a substantial activity is investing in Financial Assets *and* the entity is managed by another FI — closes the "passive holding company managed by a family office FI" gap. |
| 120 | - The professionally managed test is sharpened: the manager itself must be an FI as defined. |
| 121 | |
| 122 | ### Step 2 — If not an FI, classify as NFE/NFFE |
| 123 | |
| 124 | **[T1] Non-Financial Entity (NFE) / Non-Financial Foreign Entity (NFFE):** |
| 125 | |
| 126 | - **Active NFE/NFFE (CRS §VIII(D)(9) / FATCA §1.1472-1(c)(1)(iv)):** Meets at least one of nine categories — broadly, an entity that is not primarily passive. Most common in scope: |
| 127 | - Less than 50% of preceding-year gross income is passive AND less than 50% of assets produce passive income |
| 128 | - Stock is regularly traded on an established securities market (or it is a Related Entity of such) |
| 129 | - Governmental Entity, International Organisation, Central Bank |
| 130 | - Holding NFE that is a non-financial group member |
| 131 | - Start-up NFE (first 24 months) |
| 132 | - NFE in liquidation or emerging from bankruptcy (24 months) |
| 133 | - Treasury Center for a non-financial group |
| 134 | - Non-profit entity meeting specific charity / public-benefit tests |
| 135 | - **Passive NFE/NFFE:** Any NFE that is not Active. |
| 136 | |
| 137 | **Passive NFE Controlling Persons must be looked through and reported if they are Reportable Persons.** |
| 138 | |
| 139 | ### Step 3 — Specific FI sub-classifications under FATCA |
| 140 | |
| 141 | - **Participating FFI (PFFI)** — entered into FFI Agreement (rare under Model 1 IGAs; common in non-IGA jurisdictions) |
| 142 | - **Reporting Model 1 FFI** — reports to local tax authority |
| 143 | - **Reporting Model 2 FFI** — reports directly to IRS |
| 144 | - **Registered Deemed-Compliant FFI** — limited categories (local FFI, qualified credit card issuer, etc.) |
| 145 | - **Certified Deemed-Compliant FFI** — small jurisdictions, retirement funds, limited-life debt funds |
| 146 | - **Exempt Beneficial Owner** — government entities, international organizations, central banks, treaty-qualified retirement funds |
| 147 | - **Non-participating FFI (NPFFI)** — 30% withholding applies on US-source withholdable payments |
| 148 | |
| 149 | ### Step 4 — GIIN registration (FATCA only) |
| 150 | |
| 151 | **[T1]** A Participating FFI, Registered Deemed-Compliant FFI, Reporting Model 1 or Model 2 FFI must register with the IRS via the FATCA Registration System and obtain a **Global Intermediary Identification Number (GIIN)**. The GIIN takes the form `XXXXXX.XXXXX.XX.NNN` where NNN is the FATCA country code. |
| 152 | |
| 153 | --- |
| 154 | |
| 155 | ## Section 4 — Due diligence procedures |
| 156 | |
| 157 | ### 4.1 New Accounts — Individuals |
| 158 | |
| 159 | **[T1] Self-certification at account opening:** |
| 160 | - Identity, residence address, all jurisdictions of tax residence, TIN(s), date of birth. |
| 161 | - Reasonableness check against AML/KYC information. |
| 162 | - For US: a Form W-9 (if US person) or W-8BEN (if non-US person) under FATCA. |
| 163 | - For CRS: a CRS Self-Certification Form. |
| 164 | - Cure: if self-certification proves unreasonable or contradictory, obtain a corrected form within 90 days. |
| 165 | |
| 166 | ### 4.2 New Accounts — Entities |
| 167 | |
| 168 | **[T1] Determine FI vs NFE status from self-certification + AML/KYC + publicly available information.** |
| 169 | |
| 170 | If FI: confirm GIIN (for FATCA) or non-participating status; no further look-through for FATCA chapter 4 generally. |
| 171 | |
| 172 | If Passive NFE: identify Controlling Persons (>25% beneficial owner under AML standards, plus settlors/trustees/protectors/beneficiaries of trusts) and obtain self-certification from each. |
| 173 | |
| 174 | ### 4.3 Pre-existing Accounts — Individuals |
| 175 | |
| 176 | **[T1] Lower Value Accounts (≤ USD 1m at 30 June 2014 for FATCA; ≤ USD 1m at 31 Dec 2015 for CRS):** |
| 177 | - **Residence address test** — current residence address based on documentary evidence |
| 178 | - If no current residence address → **electronic indicia search** for indicia of US (FATCA) or other CRS jurisdiction residence |
| 179 | - Indicia: identification as US/CRS-jurisdiction resident; current mailing/residence address; current telephone number; standing instructions to transfer funds; current effective POA / signatory authority granted to a person with a US/CRS-jurisdiction address; "in-care-of" or "hold mail" address |
| 180 | - **Cure**: obtain self-certification + documentary evidence |
| 181 | |
| 182 | **[T1] High Value Accounts (> USD 1m):** |
| 183 | - Electronic search PLUS paper record search PLUS Relationship Manager inquiry (does the RM have actual knowledge of US/CRS-jurisdiction residence?) |
| 184 | - Annual rerun until cured |
| 185 | |
| 186 | ### 4.4 Pre-existing Accounts — Entities |
| 187 | |
| 188 | **[T1]** Two-step: |
| 189 | 1. Is the entity itself reportable? (Specified US Person under FATCA, or Reportable Person under CRS — usually applies only if directly tax resident in a Reportable Jurisdiction) |
| 190 | 2. If a Passive NFE → identify Controlling Persons and apply individual due diligence to each |
| 191 | |
| 192 | Threshold: pre-existing entity accounts ≤ USD 250,000 are not required to be reviewed under FATCA (some IGAs follow this; CRS has a similar threshold). |
| 193 | |
| 194 | ### 4.5 Aggregation rules |
| 195 | |
| 196 | **[T1] Aggregate accounts of the same Account Holder at the same FI to determine threshold tests (Section VII CRS / §1.1471-5(b)(4)).** Includes financial accounts where the same Account Holder is on AML/KYC records as the holder (including joint accounts at the relevant proportional share for CRS pre-2.0; CRS 2.0 imposes joint-account aggregation across both holders). |
| 197 | |
| 198 | --- |
| 199 | |
| 200 | ## Section 5 — Reportable accounts and reporting |
| 201 | |
| 202 | ### 5.1 Reportable Person — CRS |
| 203 | |
| 204 | **[T1] A Reportable Person is an individual or entity that is a tax resident of a Reportable Jurisdiction other than:** |
| 205 | - A corporation whose stock is regularly traded on a securities market |
| 206 | - A corporation that is a Related Entity of a publicly traded corporation |
| 207 | - A Governmental Entity, International Organization, Central Bank, or FI |
| 208 | |
| 209 | **Reportable Jurisdictions:** any jurisdiction with which the FI's jurisdiction has an active CRS exchange relationship. Maintained on the OECD AEOI portal. |
| 210 | |
| 211 | ### 5.2 Specified US Person — FATCA |
| 212 | |
| 213 | **[T1] A US Person other than (§1.1471-5(f)(2)):** |
| 214 | - Publicly traded corporation |
| 215 | - Tax-exempt organisation (§501(a)) |
| 216 | - US, any state, DC, US possession, agency or instrumentality |
| 217 | - Bank under §581 |
| 218 | - REIT |
| 219 | - RIC, Common Trust Fund (§584(a)), or Trust exempt under §664(c) or §4947(a)(1) |
| 220 | - Dealer in securities/commodities |
| 221 | - Broker |
| 222 | |
| 223 | ### 5.3 Cash Value Insurance and Annuity Contracts |
| 224 | |
| 225 | Cash Value Insurance Contracts with cash value > USD 50,000 are reportable. Group Cash Value Insurance Contracts and Group Annuity Contracts have specific look-through requirements to certificate holders. |
| 226 | |
| 227 | ### 5.4 Currency reporting |
| 228 | |
| 229 | All amounts reported in the currency of the account. The receiving Reportable Jurisdiction's tax authority may translate at year-end exchange rates. |
| 230 | |
| 231 | --- |
| 232 | |
| 233 | ## Section 6 — Withholding under FATCA (chapter 4) |
| 234 | |
| 235 | ### 6.1 30% withholding on US-source withholdable payments |
| 236 | |
| 237 | **[T1] Withholdable payment (§1.1473-1):** |
| 238 | - Interest, dividends, rents, royalties, premiums, annuities, compensation, remuneration, and other FDAP income from US sources |
| 239 | - Gross proceeds from the sale or other disposition of property of a type that can produce US-source interest or dividends (foreign passthru payment grandfathering remains in effect; passthru payment withholding has been deferred multiple times — confirm current status) |
| 240 | |
| 241 | ### 6.2 Withholding when payee is |
| 242 | |
| 243 | - A non-participating FFI (NPFFI) → 30% withhold |
| 244 | - A passive NFFE that fails to provide Controlling Person info → 30% withhold on the proportionate share |
| 245 | - A recalcitrant account holder of a PFFI in certain cases |
| 246 | |
| 247 | ### 6.3 Forms |
| 248 | |
| 249 | - Form W-8BEN — individual non-US persons |
| 250 | - Form W-8BEN-E — non-US entities |
| 251 | - Form W-8IMY — intermediaries and flow-through entities (with attached withholding statements) |
| 252 | - Form W-8ECI — non-US person with US ECI |
| 253 | - Form W-8EXP — government, international organization, foreign central bank, foreign tax-exempt org |
| 254 | |
| 255 | --- |
| 256 | |
| 257 | ## Section 7 — CARF and DAC8 — crypto-asset reporting |
| 258 | |
| 259 | **[T1] OECD Crypto-Asset Reporting Framework (CARF, March 2023):** |
| 260 | - Reporting Crypto-Asset Service Providers (RCASPs) report transactions with Reportable Users. |
| 261 | - Reportable Crypto-Assets: crypto-assets used as means of payment or investment; excludes Central Bank Digital Currencies (which fall under CRS 2.0) and certain closed-loop assets. |
| 262 | - Transactions reported: crypto-to-fiat exchanges, crypto-to-crypto exchanges, reportable retail payment transactions ≥ USD 50,000. |
| 263 | - First reporting period: 2026 for early adopters; 2027 for most committed jurisdictions. |
| 264 | |
| 265 | **[T1] EU DAC8 (Council Directive (EU) 2023/2226):** |
| 266 | - Transposes CARF into EU law. |
| 267 | - Entry into force: 1 January 2026 (reporting from 2026 reference period, first exchange 2027). |
| 268 | - Crypto-Asset Service Providers (CASPs) authorised under MiCA report to their Member State of authorization. |
| 269 | |
| 270 | --- |
| 271 | |
| 272 | ## Section 8 — Edge cases and special rules |
| 273 | |
| 274 | ### 8.1 Joint accounts (CRS 2.0) |
| 275 | |
| 276 | **[T1]** Pre-CRS-2.0: each holder's share was reported separately. |
| 277 | CRS 2.0 (in force 2026+): the **full account balance** is reported for each holder unless the FI can establish proportional ownership through documentary evidence. Plan for system upgrade. |
| 278 | |
| 279 | ### 8.2 Trusts as FIs |
| 280 | |
| 281 | A trust qualifies as an Investment Entity if its income is primarily from Financial Assets AND it is managed by a professional trustee that is itself an FI. **Trustee-Documented Trust** (TDT) status allows the trustee FI to absorb the trust's reporting obligation. |
| 282 | |
| 283 | ### 8.3 Non-Profit NFEs |
| 284 | |
| 285 | To qualify as Active NFE on non-profit grounds, must meet all of: established and operated in jurisdiction of residence exclusively for religious, charitable, scientific, artistic, cultural, athletic, or educational purposes / or as a professional organisation; tax-exempt; no shareholders/owners with proprietary or beneficial interest; applicable law / governing documents preclude distribution other than for charitable/non-profit purposes; require distribution of assets on liquidation to a Governmental Entity or another Active NFE. |
| 286 | |
| 287 | ### 8.4 Pre-existing entity accounts under USD 250,000 |
| 288 | |
| 289 | Optional review — many FIs document the choice to apply or not apply this threshold and operate accordingly. CRS allows the threshold; some Member States (e.g., Netherlands) require all accounts to be reviewed. |
| 290 | |
| 291 | ### 8.5 Anti-avoidance — using third-country residence to escape reporting |
| 292 | |
| 293 | Both FATCA (§1.1471-4(f)(2) RO certification) and CRS (Section IX) contain anti-avoidance rules. If an arrangement's primary purpose is to avoid reporting, the FI must treat the relevant account as if the arrangement did not exist. |
| 294 | |
| 295 | The OECD MDR on CRS Avoidance Arrangements (2018) creates a parallel intermediary disclosure regime. See `dac6-mdr-reportable-arrangements.md`. |
| 296 | |
| 297 | ### 8.6 US-EU IGA developments |
| 298 | |
| 299 | The CJEU has confirmed (Joined Cases C-457/21 P and others) that Member States can transmit FATCA data to the US under Model 1 IGAs notwithstanding GDPR concerns, subject to the data protection guarantees in the IGA itself. |
| 300 | |
| 301 | ### 8.7 Penalty exposure — examples |
| 302 | |
| 303 | | Jurisdiction | Penalty | |
| 304 | |---|---| |
| 305 | | **US** (FATCA) | Up to USD 250 per failure (cap USD 3m); higher for intentional disregard. 30% withholding loss to Account Holder. | |
| 306 | | **UK** | Up to GBP 3,000 per failure + GBP 600/day continuing | |
| 307 | | **Germany** | Up to EUR 50,000 per failure | |
| 308 | | **Singapore** | SGD 5,000 and/or 12 months imprisonment | |
| 309 | | **Australia** | Up to AUD 12,500 base + indexation | |
| 310 | | **Switzerland** | Up to CHF 50,000 per failure (FATCA), separate sanctions under AEOIA | |
| 311 | |
| 312 | --- |
| 313 | |
| 314 | ## Section 9 — Output specification |
| 315 | |
| 316 | The reviewer brief must include: |
| 317 | |
| 318 | 1. **FI vs NFE classification** for the entity with supporting evidence and code references. |
| 319 | 2. **GIIN status** (if FI) — registered? lapsed? sponsoring vs sponsored? |
| 320 | 3. **Active vs Passive NFE** determination with the gross income/asset test or specific category. |
| 321 | 4. **Account inventory** — every Financial Account with type (Depository / Custodial / Cash Value / Annuity / Equity-Debt), holder, Controlling Persons (if any), aggregated balance. |
| 322 | 5. **Reportable Account determination** per account, with the reasoning (which Reportable Jurisdiction, which indicium triggered). |
| 323 | 6. **Due diligence completion log** — self-certifications received, indicia search results, cures performed. |
| 324 | 7. **Reporting schedule** — XML payloads by jurisdiction with deadlines. |
| 325 | 8. **FATCA withholding exposure** — any payments at risk of 30% chapter 4 withholding. |
| 326 | 9. **CARF / DAC8 readiness** — whether the entity is a Reporting Crypto-Asset Service Provider. |
| 327 | 10. **Reviewer questions** — open items flagged as [T2] or [T3]. |
| 328 | |
| 329 | --- |
| 330 | |
| 331 | ## Section 10 — Self-checks |
| 332 | |
| 333 | Before delivering output, verify: |
| 334 | |
| 335 | - [ ] FI status tested against all four FI categories under CRS §VIII(A) and §1.1471-5(e). |
| 336 | - [ ] Investment Entity test correctly applies the >50% passive gross income test AND the "managed by an FI" test (post-CRS-2.0 broadening). |
| 337 | - [ ] Active NFE test against the nine categories with documentary evidence. |
| 338 | - [ ] Controlling Persons identified for every Passive NFE following AML/KYC, settlor/trustee/protector/beneficiary rules for trusts. |
| 339 | - [ ] Indicia search completed for pre-existing individual accounts. |
| 340 | - [ ] Aggregation rules applied to determine threshold tests. |
| 341 | - [ ] CRS 2.0 joint-account treatment applied for reporting periods 2026+. |
| 342 | - [ ] GIIN registration verified on FATCA portal and not lapsed. |
| 343 | - [ ] XML schema for the receiving jurisdiction matched (e.g., CRS XML 3.0; FATCA XML v2.0; jurisdiction-specific overlays). |
| 344 | - [ ] Deadlines plotted for every receiving jurisdiction. |
| 345 | - [ ] CARF / DAC8 status reviewed for any crypto-asset activity. |
| 346 | - [ ] Output flags every [T2]/[T3] item for reviewer judgement. |
| 347 | |
| 348 | --- |
| 349 | |
| 350 | ## Section 11 — Prohibitions |
| 351 | |
| 352 | - **Do not** classify an entity as Active NFE without testing against the specific nine categories — the gross income/asset test is one of nine, not the only one. |
| 353 | - **Do not** treat absence of indicia as conclusive — Relationship Manager actual knowledge can override electronic and paper searches. |
| 354 | - **Do not** rely on a self-certification that contradicts AML/KYC information without curing. |
| 355 | - **Do not** treat an account under threshold as out of scope without explicitly documenting the threshold election. |
| 356 | - **Do not** ignore CARF / DAC8 just because the entity is not a traditional FI — crypto-asset service providers face independent registration and reporting. |
| 357 | - **Do not** advise on FATCA / CRS structuring to reduce reporting (e.g., reorganising to qualify as Active NFE) without explicit escalation — anti-avoidance rules apply, and intermediaries face DAC6 / OECD MDR exposure. |
| 358 | |
| 359 | --- |
| 360 | |
| 361 | ## Section 12 — Disclaimer |
| 362 | |
| 363 | This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. FATCA and CRS classification is fact-specific, strict-liability, and varies between IGA partners and committed CRS jurisdictions. Every output must be reviewed and signed off by a credentialed AEOI specialist before any self-certification, filing, or onboarding decision is made. |
| 364 | |
| 365 | The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com). |
| 366 |
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Verification status
Research-verified
Drafted from authoritative sources (tax authority sites, Big-4 summaries). Awaiting credentialed sign-off.
Needs section-by-section practitioner review to reach accountant-verified.
Section review progress
0/36
About
Use this skill whenever a Financial Institution (FI), trustee, or account holder asks about automatic exchange of financial account information. Trigger on phrases like "FATCA", "CRS", "Common Reporting Standard", "automatic exchange of information", "AEOI", "Form W-9", "Form W-8BEN", "Form W-8BEN-E", "self-certification", "Reportable Account", "Reportable Person", "Controlling Person", "passive NFE", "active NFFE", "GIIN", "responsible officer certification", "FATCA 8966", "FBAR", "Form 8938", "DAC2", "CARF", or any question about whether a financial account, entity, or person is reportable for AEOI purposes. Covers the US Foreign Account Tax Compliance Act (FATCA — IRC §1471-1474 and Treasury Regulations §§1.1471-1.1474, intergovernmental agreements Model 1 and Model 2), the OECD Common Reporting Standard (CRS — published 2014, updated 2023 with the Crypto-Asset Reporting Framework / CARF and CRS 2.0 amendments), and the EU's CRS implementation under DAC2 (Council Directive 2014/107/EU). Does NOT cover: FBAR (FinCEN 114) which is a US-only beneficial-owner disclosure; Form 8938 individual reporting; ultimate-beneficial-ownership (UBO) registers under EU AMLD; or the OECD MDR on CRS Avoidance Arrangements (see dac6-mdr-reportable-arrangements). ALWAYS read this skill before classifying an account as reportable or determining due diligence obligations.
GLOBALty-2025
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