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09 Jan 2023
All financial institutions that include insurers, banks, and asset management businesses in participating jurisdictions/countries are required to be compliant with the CRS. UAE Reporting Financial Institutions (“UAE RFIs”) must report on recognized Reportable Accounts (or report that it does not have any such accounts via the provision of a nil return) via the CRS filing portal. Like FATCA, the CRS requires all financial institutions(Fls) residents in a participating jurisdiction to distinguish and report any reportable accounts (typically person tax resident in a CRS participating jurisdiction).
As the CRS seeks to establish the tax residency of customers. Under the CRS, financial institutions must identify customers who appear to be tax residents outside the jurisdiction/country where they hold their accounts and products, and submit certain information to our local tax authority. They may then share this information with the tax authority where you are a tax resident.
Under the CRS, UAE RFIs are needed to identify Financial Accounts that are held by an Account Holder that is a Reportable Person or by a Passive NFE with one or more Controlling Persons who are Reportable Persons and report certain financial account data on an annual basis to the Regulator or UAE MoF (for unregulated entities).
4. Ministry of Finance in respect of any FI not otherwise controlled by any of the aforementioned Regulatory Authorities.
What kinds of entities are Financial Institutions under CRS?
For the CRS, Financial Institutions(FIs) are widely defined as Abu Dhabi Global Market (ADGM): Financial Services Regulatory Authority (FSRA).
These include investment traders, banks, custodians, asset/wealth managers, funds, and life insurance organizations but are not limited to these types of entities
For the CRS, non-reporting FIs are broadly defined as:
The above is subject to change. For a complete definition of Non-Reporting FIs, please refer to the relevant UAE CRS Regulations.
What are the obligations of a Reporting UAE RFI under Common Reporting Standard?
UAE RFIs are needed to comply with the UAE CRS Regulations. Broadly, UAE RFIs must:
Please note that this is not a full list, and you should refer to the UAE CRS Regulations for more information.
Any Entity that holds a significant amount of its firm Financial Assets for the account of others is referred to as a "Custodial Institution."
Any Entity that accepts deposits in the ordinary course of a banking or comparable business is referred to as a "Depository Institution."
Specified Insurance Company
Any Entity that is an insurance business that issues, or is obligated to make payments concerning, a Cash Value Insurance Contract or an Annuity Contract is referred to as a "Specified Insurance Company."
"Investment Entity" means any Entity that:
For the CRS Regulations, the following may be classed as Investment Entities:
17 Jun 2021