Glossary · Investors & Compliance
Common Reporting Standard (CRS)
The Common Reporting Standard (CRS) is the OECD framework for automatic exchange of financial account information between participating tax jurisdictions.
The Common Reporting Standard was developed by the OECD and adopted by a large number of jurisdictions, including most major offshore fund centers. It requires financial institutions, including investment funds, to identify the tax residence of account holders and controlling persons and report accounts held by residents of other participating jurisdictions to their local tax authority, which exchanges the data internationally. The US does not participate in CRS; it relies on FATCA.
CRS due diligence runs alongside KYC at onboarding. Investors provide self-certifications of tax residence and taxpayer identification numbers, and entity investors are classified (for example as active or passive non-financial entities), which determines whether their controlling persons must be reported.
Pitfalls include missing or invalid tax identification numbers, failing to look through passive entities, inconsistencies between self-certifications and KYC documents, and late annual filings. Many jurisdictions impose penalties for non-compliance.
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