Understanding FATCA and CRS regulations is crucial for global financial compliance. Three questions to Marco Scappaticci, FATCA-CRS expert at Value Partners.
Could you briefly explain what FATCA and CRS are, and how they apply to companies in Luxembourg?
FATCA is a U.S. regulation and CRS is a global initiative, both aimed at combating tax evasion through an automatic exchange of financial account information. In Luxembourg, qualifying companies must report to the Administration des Contributions Directes, which then automatically exchange the information with its relevant global counterparts.
What pragmatic steps can organisations take to ensure they meet regulatory requirements and avoid potential penalties?
Complexity often arises due to varying interpretations, data integrity, and changing regulations. Correct classification under FATCA and CRS is pivotal for meeting international tax obligations and avoiding penalties. Organisations should invest in thorough training on FATCA and CRS guidelines. Routine internal audits and external consultations can provide valuable insights into how well these guidelines are being followed.
If you are committed to meeting all FATCA-CRS requirements, what strategies are recommended?
The most effective strategies focus on meticulous interpretation of the rules coupled with a multi-departmental approach for accurate data gathering. Securing specialised guidance in these areas is highly recommended. In this context, Value Partners offers a comprehensive suite of services, including specialised FATCA-CRS assistance, review, and monitoring. Our tailored solutions help alleviate the burden of complying to these requirements, enabling you to concentrate on core business objectives.