This is true for discretionary beneficiaries. It is important to note that the Implementation Handbook makes a distinction between beneficiaries entitled to 'mandatory' distributions and those who are discretionary without any enforceable rights to receive trust property. As such, the RFI must identify whether their beneficiaries are discretionary or mandatory and report according.   A discretionary

Section 32A (10) of Mutual Legal Assistance (Tax Matters) Act, Revise Edition 2020 allows Reporting Financial Institutions to align the scope of Beneficiaries as controlling Person with the scope of beneficiaries treated as a reportable persons.    If the reporting FI elects this approach, Section 32A (11) and (12) of the MLA indicates that the Reporting

An investment entity only has to report on a Financial Account and according to the standard an Investment Entity’s Financial Account is any equity or debt interest in the Financial Institution. Interest and Dividends are to be reported in case of a Custodial Account and interest paid is to be reported in the case of

The standard does not base the calculation or value of a Financial Account (Trust Property) on the local laws of the BVI. The Standard at Section 1. Subparagraph A(4) – Account balance or value states that “in the case of an equity or debt interest in a Financial Institution, the balance or value of an

In Section V and Section VI of the CRS Commentary the following must be noted:   Section V. C. Entity Accounts with respect to which reporting is required. With respect to Preexisting Entity Accounts described in paragraph B, only accounts that are held by one or more Entities that are Reportable Persons, or by Passive NFEs

The BVI Investment Entity can make that decision. What should be noted is under BVI law the RFI remains responsible for any failure identified if any with the due diligence and reporting done by the Trustee.

If these persons exercise ultimate effective control over the trust, they must always be treated as controlling persons of a trust or an account holder and as such must be reported. If they do not, then they are not account holders or controlling persons.

The account will not be reported since it has no account holder. As stated in our presentation the only account holder (settlor) has passed away, therefore, for the moment the RFI will treat the account as an excluded account. When circumstances change (i.e. the distributions have been made to the beneficiaries), then the account will

The Closure of any financial account that is held by a reportable person must be reported. If the closure of the account and withdrawal of the fund means that the entity no longer meets the definition of an investment then, then the RFI must also make an application for deregistration to the BVI with the

The relationship manager only becomes relevant where the account is a high value account. A relationship manager is an officer or other employee of an FFI who is assigned responsibility for specific account holders on an on-going basis (including as an officer or employee that is a member of an FFI’s private banking department), advises