Automatic exchange of information (FATCA and CRS) - Advanced module - Focus on asset management and custody

Our training will include practical examples on operational challenges faced by investment funds and its service providers. This advanced workshop is aimed for employees of investment funds, management companies, transfer agents and custodian banks having already gained solid experience in both FATCA and CRS.

The Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS) constitute key tax transparency regulations that came into force respectively in 2014 and 2016. Both regulations have been transposed into the Luxembourg laws and have been amended by the law of 18 June 2020 known as "the FATCA and CRS governance law".

Since the 1st January 2021, all Luxembourg Financial Institutions ("FIs") are required to establish a FATCA/CRS compliance programme which includes various requirements (e.g. IT infrastructure, written policies and procedures, oversight in case of delegated functions). A second important pillar of this compliance programme requires FIs to implement proportionate effective controls on the respect of the FATCA and CRS due diligence and reporting obligations.

While presenting all important FATCA and CRS key principles with concrete examples, our expert will also present you some best-market practices to get an efficient FATCA/CRS operating model and reduce the challenges faced by FIs.

By the end of this training, the participants will be able to:

• explain the purpose and the mechanism of the FATCA and CRS rules and their general impacts (incl. the FATCA and CRS governance requirements);
• understand the main synergies and differences between FATCA and CRS;
• determine how to review self-certification from individual and corporate investors (including U.S. forms);
• understand the different FATCA and CRS status that funds may have;
• explain the procedures to identify controlling persons of entities;
• list the main elements to be reported and the associated timeline;
• have a clear action plan to set-up an efficient FATCA and CRS operating model;
• explain the main risks involved.

This training includes all the important FATCA and CRS key principles supported by concrete examples as well as some best-market practices in order to have an efficient FATCA/CRS operating model to reduce the challenges faced by FIs. This training also provides with some insight about the recent regulatory updates (if any) and the controls and inquiries performed by the Luxembourg tax authorities. This advanced module for the asset management and custody industry will also cover the FATCA/CRS classification of the funds and other vehicles within investment structures.

Similar to the provisions of the Foreign Account Tax Compliance Act (FATCA) and the various Intergovernmental Agreements (IGAs) between the US government and partner governments around the world, CRS imposes obligations on Financial Institutions (FIs) across the financial services market to review and collect information in an effort to identify an account holder’s country of residence and then in turn, to provide certain specified account information to the home country’s tax administration.

Luxembourg has concluded a Model I IGA with the United States on 28 March 2014. The IGA was ratified by the law of 24 July 2015.

This training is coordinated by Pierre Kirsch, Tax Partner in charge of CRS/FATCA related tax consulting, PwC Luxembourg. The team of trainers consists of experienced PwC specialists who are specialised in CRS/FATCA related issues.

As the team is intensively dealing with CRS, FATCA as well as Qualified Intermediary regime (QI) from the very first beginning, we have gained far reaching technical as well as practical expertise in this respect. He is the responsible partner at PwC Luxembourg for CRS, FATCA and QI and heavily involved in projects assisting financial services clients to understand and implement CRS. PwC is an active member of FATCA/CRS working groups of Luxembourg professional organisations including the ABBL (Luxembourg Bankers Association).