CRS ("Common Reporting Standard") is a global standard for the automatic exchange of information on financial accounts between local competent authorities from different countries issued by OECD (“Organisation for Economic Co-operation and Development”). The standard requires financial institutions to identify and document financial accounts held by customers with a tax residence in another state or jurisdiction other than its own and report that information to local competent authorities. Local competent authorities exchange the information between each other’s.
All EU Member States are participating in CRS and have signed an agreement on automatic exchange of financial information.
Why CRS?Based on the OECD Common Reporting Standard and national legislation, all financial institutions are required to collect and report certain information about an account holder’s tax residency and the corresponding tax identification numbers (TINs), to the local competent authority in order to counter tax evasion in different countries.
By collecting this information from all of our customers, Nordea contributes to creating a safe and healthy society by preventing tax evasion and other financial crimes.
What does it mean to me, as a Nordea customer?
CRS affects individuals and companies that are tax resident in any country other than where the bank is located, and who holds an account or investments in a bank or other financial institutions in the country where such bank is located.
From 1. January 2016 Nordea is going to identify new customers' residence for tax purposes, and review existing account holders to identify customers’ tax residency/ies. Nordea must also identify certain corporate customers' beneficial owners with any other tax residence than the country where the bank is located. This may be done by collecting self-certifications from the customers/beneficial owners.
Nordea is not allowed to conduct tax advisory nor determine customer’s tax residency on its own. If a customer has any questions on how to determine their tax residency status, they need to contact and consult with a tax advisor or the local tax authorities.