Transparency is the new green: A Global Private Client Services Guidebook
04 January 2016
In the past, financial secrecy and banking secrecy were common. Cross border tax frauds and tax evasions by high net worth individuals were serious problems for many jurisdictions. But, the world has now changed. Once we hit 2017, the banking secrecy clause will be nothing more than a memory. The reality is that a new transparent world is emerging. Countries all over the world will soon combat tax evasion and reveal hidden offshore tax noncompliance through the application of Automatic Exchange of Information (AEoI).
As of 1 October 2015, almost 100 jurisdictions have committed to implementing the Common Reporting Standard (CRS). Of these, 56 are “early adopters”. Financial institutions in early adopter countries will be required to implement the CRS from 1 January 2016, with the first reporting and exchange of information taking place in 2017, in respect of the 2016 calendar year. The majority of the remaining jurisdictions will implement the CRS with effect from 1 January 2017, with a small number of delayed implementations until 1 January 2018.
This is changing the game of international private wealth planning. There will be less places to hide assets and the era of financial secrecy and banking secrecy is definitely over.
Read our special guide to understand more about the changing reporting landscape and how BDO Global Private Client Services can help you.