The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) has levied penalties totaling AED170,000 (around $46,000) on six institutions for failing to adhere to the requirements of the Common Reporting Standard (CRS).
Common Reporting Standard
The CRS, developed by the Organisation for Economic Co-operation and Development (OECD), serves as a global framework for the exchange of financial accounts and tax-related information among international regulatory bodies. It mandates financial institutions to collect and report specific financial information and adhere to due diligence procedures outlined in the regulations. Since its establishment in the UAE in 2017, the CRS has been instrumental in enhancing financial transparency and combating tax evasion.
Addressing regulatory failures
The penalties imposed are for:
- Failing to follow due diligence procedures
- Failing to maintain adequate records of due diligence performance
- Failing to submit complete and accurate information
- Failing to fulfil the requirement of submitting annual information returns
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Commitment to international standards
For his part, Emmanuel Givanakis, CEO of the FSRA at ADGM, said, “ADGM is committed to complying with international standards. The FSRA actively supports the UAE’s commitment to international tax information exchange as part of a broader national agenda to enhance financial transparency.”
The FSRA achieves that through maintaining a robust supervisory framework and enforcement regime. Givanakis adds that compliance with the Common Reporting Standard requirements remains a top priority for the FSRA. Hence, it aligns with its objective of promoting integrity within the ADGM financial system. He reiterated the FSRA’s unwavering commitment to taking regulatory action against practices aimed at evading tax reporting obligations.
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