What is Common Reporting Standard (“CRS”)?

The following are some key points from the DIFC CRS:

Article 4 of the Law indicates that the DIFC CRS applies to:

• any Reporting Financial Institution (“RFI”) subject to the supervision of the Relevant Authority under this Law;
• any Account Holder of a Reportable Account held with an RFI subject to the supervision of the ROC; and
• any other person to whom a provision is specified to apply.

Article 12 of the Law sets out collecting, reporting and record keeping obligations of the RFIs, the key requirements being:

• Having used appropriate systems and procedures in order to comply with the DIFC CRS, the RFI must collect and report to the UAE Competent Authority (i.e., the MOF) the information required in the Regulations using the ROC portal in the manner and on the dates prescribed in the Regulations under Section I, General Reporting Requirements.
• keep records of the steps undertaken and any evidence relied upon for the performance of the due diligence procedures and measures to obtain those records that the RFI obtains or creates for the purpose of complying with this Law, as set out in the Regulations under Section II, General Due Diligence Requirements.
• provide and English translation of any records as necessary, and retain records in an electronically readable format for a retention period of six (6) years after the date of reporting the information.
• prior to 28 February each year provide any Reportable Persons (as defined in the law), information regarding its reporting requirements to MOF.

Section II(E) of the Regulations provides that an RFI may use a service provider to undertake the due diligence requirements and the reporting obligations but states that those obligations continue to be the obligations of the RFI.

Sections II through VII of the Regulations sets out the obligations for specific account types that RFIs must review and report on as follows:

• Due Diligence for pre-existing individual accounts
• Due Diligence for new individual accounts
• Due Diligence for pre-existing entity accounts
• Due-Diligence for new entity accounts
• Special Due Diligence rules