FATCA/CRS for the 2nd line of defence: entities classification, due diligence and reporting obligations for the alternative sector

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 of investment funds, management companies, transfer agents and custodian banks, willing to gain or deepen their FATCA and CRS knowledge and be aware of any recent regulatory updates or best-practice.

The Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS) 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") are required to 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 important pillar of this compliance programme requires FIs to implement proportionate and effective controls to ensure compliace with 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 participants with some best-market practices to get an efficient FATCA/CRS operating model and reduce the challenges faced by FIs.

This training also provides with some insight into 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.

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.

• FATCA/CRS – Introduction
• Main obligations under FATCA and CRS for FIs
• FATCA and CRS governance in asset management and custody industry
• Classification of investment structures for FATCA/CRS compliance
• New investors on-boarding 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.