Paolo Soro

Automatic Exchange of Information (AEOI)

The effective global implementation of the AEOI Standard is the second pillar of the Global Forum’s work and is a key priority for 2016 and 2017. Abstract from the OECD Secretary-General Report to G20 Finance Ministers, in Chengdu (Republic of China), 23 - 24 July 2016.

Delivering the benefits the AEOI Standard has to offer relies on all jurisdictions implementing the standard in accordance with the timelines to which they have committed. This requires jurisdictions to dedicate the necessary resources to turn the political commitments into a practical reality. The Global Forum is closely monitoring the delivery of all of the important elements of the AEOI Standard, both legal and operational, as well as assessing the key areas to ensure they are being implemented effectively. This is in advance of conducting comprehensive peer reviews to ensure the effective implementation of the AEOI Standard by all.

Almost all of the jurisdictions committed to start exchanging information in 2017 have now adopted the legal and regulatory framework required to ensure that financial institutions collect the necessary data in the manner prescribed by the AEOI Standard. Collection of data by financial institutions in these jurisdictions has already started. The information will be reported to their tax authorities, who will then exchange the data next year. Moreover, almost all of these jurisdictions already have the necessary international instruments in place to provide the legal basis for the exchanges (see Annex 1 below on the Convention). The Global Forum is reaching out to the last few jurisdictions to offer assistance in putting in place the domestic and international regulatory framework essential for delivery of the commitments made.

At this stage, the jurisdictions committed to start exchanging information in September 2018 are engaged in putting in place the relevant frameworks for timely implementation. Some of them do not yet have the necessary domestic legal and regulatory frameworks in place. There is also much work to do to put in place the necessary international legal framework to ensure the exchanges can take place. The Global Forum is closely monitoring the situation, providing support as necessary. Throughout the remainder of the year, a critical period for the successful delivery of the commitments made to exchange information in 2018, the Global Forum will continue to report on state of play to the G20 in increasing detail.

The Global Forum is also conducting assessments of the key areas to implement the AEOI Standard to ensure jurisdictions are implementing it effectively. Given the critical need to ensure that the information exchanged is kept confidential and properly safeguarded, the first area to be assessed has been the legal and operational frameworks to keep data confidential and safe in each implementing jurisdiction. All committed jurisdictions will be assessed by the end of 2016, with assessments in relation to 66 jurisdictions having already been completed.

In advance of the comprehensive reviews, emphasis will also be placed on the accuracy of implementing domestic legislation in each jurisdiction and the network of international legal agreements in place with appropriate and interested partners. The aim is to ensure that all of the necessary data is collected by financial institutions and exchanges take place from the outset. Finally, the Global Forum is putting in place the necessary legal and governance structures to manage the operation of the Common Transmission System currently being developed to transmit the information between exchange partners.

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