Financial institutions required to report accounts held by non-residents to the Federal Administration of Public Revenue (Administración Federal de Ingresos Públicos, AFIP) under the Common Reporting Standard (CRS) of the Organisation for Economic Cooperation and Development (OECD) should implement international standards to identify such customers, as decided today by the Board of the BCRA.
Such communication allows the BCRA to take part in the oversight of due diligence processes applied by regulated institutions, in connection with the CRS and the Foreign Account Tax Compliance Act (FATCA).
As part of due diligence processes, financial institutions required to report accounts held by non-residents to the tax authority should ask their non-resident customers to submit a sworn statement. For both natural and legal persons, such statement shall include, for example, information on the country of tax residency and the tax identification number, address, and parent companies.
Institutions should fulfill the sworn statement requirement within 60 days for existing accounts and within 10 days for new accounts. This new information to be submitted by institutions, apart from that currently informed, will fulfill the requirements of the standard set by the OECD.
This communication is established within the framework of the cooperation coordinated by AFIP with regulatory bodies of financial institutions to conduct examinations to which Argentina is bound under the Multilateral Agreement between Competent Authorities.
