The OECD Common Reporting Standard (“CRS”), which is in force since 1 January 2016, creates the obligation for Luxembourg Financial Institutions (“FIs”) to report (the “CRS report”), on an annual basis, detailed personal and financial information (the “Information”) concerning certain account holders that have been identified and classified as reportable by the FIs to the Luxembourg Tax Authorities, l’Administration des Contributions Directes (the “ACD”).
At the same time, reporting obligations related to the Foreign Account Tax Compliance Act (“FATCA”), introduced in 2015 and conceptually similar to CRS, will be enhanced with the introduction of financial information not requested so far.
Although both reporting schemes seem to converge, practical implications have shown that FIs will have to implement different solutions mainly due to the expected volumes to manage and country-specific transmission protocols and schemes.
In order to help you managing your FATCA & CRS reporting, we have developed with Nowina Solutions a Luxembourg firm expert in eSignature and 'paperless' digital processing, a flexible reporting software known as “ARNO”. ARNO brings value by improving the quality of the data in your source system, supporting high volumes of data thanks to filtering and splitting capabilities, and ensuring up-to-date technical standards and business rules at any time of your business.
Should you use it as a Service or as a License installed at your premises, ARNO harmonises the treatment of your financial accounts for FATCA and CRS purposes with a single platform.