Automatic exchange of information (FATCA and CRS) for the 2nd line of defence - Focus on private banking

This training is designed for professionals who encounter FATCA and CRS requirements in their first or second lines of defence roles, whether within internal controls or service provider functions.

More specifically, this training is aimed for:

• employees within a bank acting as relationship managers or working in the client onboarding or compliance departments;
• employees seeking to gain or deepen their FATCA and CRS knowledge and to stay informed about any recent regulatory updates or best-practi

The Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard constitute key tax transparency regulations that came into force in 2014 and 2016, respectively. 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 January 2021, all Luxembourg Financial Institutions ("FIs") must establish a FATCA/CRS compliance programme, encompassing various requirements such as IT infrastructure, written policies and procedures, and oversight in case of delegated functions. A second crucial pillar of this compliance programme requires FIs to implement proportionate and effective controls to ensure compliance with FATCA and CRS due diligence and reporting obligations.

By the end of this training, 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 statuses that funds can possess;
• explain the procedures for identifying controlling persons of entities;
• list the main elements to be reported and the associated timeline;
• have a clear action plan for establishing an efficient FATCA and CRS operating model;
• explain the main related risks.

This training encompasses all essential FATCA and CRS key principles, illustrated with concrete examples, along with best-market practices to establish an efficient FATCA/CRS operating model and mitigate challenges faced by financial institutions (FIs). Additionally, the training offers insights into recent regulatory updates (if any) and outlines the controls and inquiries conducted by the Luxembourg tax authorities.

This module, tailored for the private banking industry, will also address the FATCA/CRS classification applicable to various types of entities that may open a bank account.

• FATCA/CRS – Introduction
• Main obligations under FATCA and CRS for FIs
• FATCA and CRS governance in the banking industry
• Legal entity classification
• New clients onboarding process
• Reporting

This training is coordinated by Pierre Kirsch, Partner at PwC Luxembourg.

Pierre Kirsch is a partner in the Luxembourg financial services tax practice with over 30 years of experience serving clients in banking, insurance, and asset management. He leads a team specialising in tax compliance analysis for onboarding banking clients and investors into complex alternative fund structures. Pierre and his team advise financial sector actors in Luxembourg and internationally, helping clients review onboarding and tax reporting processes, implement controls, and define organisational roles. He contributed to establishing PwC Regulated Solutions S.à r.l., managing daily operations, and supports PwC’s financial services clients with consulting and reporting on operational taxes including FATCA, CRS, QI, and CbCR.