Reporting under the CRS will be in place from 2016, with different countries taking over the regime at different times. In the United Kingdom, reporting requirements have been introduced for financial accounts that exist from 1 January 2016 and financial institutions must notify HMRC of certain information by 31 May 2017. HmRC will exchange relevant information with participating jurisdictions until 30 September 2017. Customers who approach a bank in response to a letter regarding the possibility of tax opening can report, either openly or accidentally, that there are irregularities in their tax affairs. This will result in money laundering reporting obligations for the Bank. In a small number of cases, the money laundering report may lead to a criminal tax investigation conducted by HMRC in the customer`s business and unfavourable publicity for the bank when the case is tried. This practice note provides a comprehensive overview of the application of the Foreign Account Tax Compliance Act (FATCA) to credit agreements in the United Kingdom (UNITED KINGDOM). This guide discusses reporting requirements under UK FATCA and the steps that account holders and financial institutions such as banks and trust companies should take. .
