Analysis of Common Reporting Standard Loopholes


The OECD is aware of major weaknesses of the CRS and will refine the Standard in making it more effective, in priority order of the following:

  1. Bilateral shopping e.g. Bahamas assurance of not exchanging info with LATAM
  2. Zero cash value and non-cash value investment-linked insurance
  3. Residence planning
  4. Insurance effectively prohibited from being sold loophole
  5. Investment Entity with mangement and beneficeries in same jurisdiction
  6. Managing assets in a CRS jurisdiction placed in USA
The Common Reporting Standard

  1. OECD PDF document Common Reporting Standard and Commentary
  2. The PDF document CRS implementation Handbook
  3. OECD update of the PDF document status of the CRS on 5.11.2015
  4. OECD PDF document Background Information Brief dated Jan 2016
  5. The OECD regularly updated list of PDF document CRS-related Frequently Asked Questions
Important Updates

  • 8.09.2016 - OECD extremly disappointed with Bahamas abuse of bilateral option, stern letter to Government to follow. In a conference in Spain Pascal said Bahamas must follow the multilateral Convention route.
  • 5.07.2016 - EU Council proposal as regards access to anti-money-laundering information for identifying beneficial owners.
  • 5.7.2016 - EU Commission has proposed the PDF document 4th Anti Money Laundering Directive which lowers the shareholding threshold to be a beneficial owner from 25% to 10% plus one share. This will affect the CRS definition of beneficial owner.
  • 26.7.2016 - OECD list of 101 jurisdictions PDF document CRS committing to CRS.
  • 5.11.2015 - update status report shows the OECD would publish a list of jurisdictions which satisfies the data confidentiality conditions necessary for AEoI. Participating jurisdictions cannot use the excuse that they must first determine if the potential partner jurisdiction can be trusted to exchange data.

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