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The OECD developed the CRS, which was established in the UAE with effect from January 1, 2017. Image Credit: Supplied

Dubai: The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has imposed penalties and administrative fees ranging from Dh30,000 to Dh119,000 on five Reporting Financial Institutions for contraventions of the Common Reporting Standard Regulations 2017.

The Organisation for Economic Co-operation and Development (OECD) developed the Common Reporting Standard (CRS), which was established in the UAE with effect from January 1, 2017.

The CRS concerns financial and tax-related information exchange on a global level between tax authorities and other international financial regulators through secure channels. It sets out the scope of information to be reported, the financial institutions required to report, the account holders subject to reporting, as well as the procedures to be followed by financial institutions.

The actions imposed by the FSRA address failures (to the extent applicable in each case) to apply adequate due diligence procedures; keep records of the performance of due diligence; report required information in a complete and accurate manner; and obtain valid self-certification of tax information from clients.

“The ADGM is committed to ensuring its regulations are complied with, including those related to tax reporting, which are based on international obligations and standards,” said Emmanuel Givanakis, CEO of the FSRA. “A key objective of the FSRA is to promote and enhance the integrity of the ADGM financial system. Accordingly, the FSRA supports initiatives to make tax systems more transparent, and to prevent practices intended to circumvent tax reporting.”