What are FATCA and CRS?

Question

Accepted Answer

FATCA and CRS are international tax compliance regulations aimed at combating tax evasion by requiring financial institutions to report foreign assets.

FATCA (Foreign Account Tax Compliance Act) was enacted by the U.S. in 2010 to prevent tax evasion by U.S. citizens holding accounts abroad.
CRS (Common Reporting Standard) is a global standard for the automatic exchange of financial account information, developed by the OECD.
FATCA requires foreign financial institutions to report on U.S. account holders, while CRS requires countries to share information on foreign account holders.
For example, a U.S. citizen with a bank account in Switzerland must have that account reported to the IRS under FATCA.
CRS applies to over 100 countries, requiring them to exchange information about non-resident account holders with each other.

Asked in HSBC Group

What are FATCA and CRS?

Interview Questions Asked to Mortgage Loan Processor at Other Companies