Automatic Exchange of Information: Updated ABBL guidance and engagement with the Global Forum

Automatic Exchange of Information

On 23 November 2023, the ABBL met the assessment team of the Global Forum to discuss the implementation of the Automatic Exchange of Financial Account information in Luxembourg. Ten years on the ABBL remains fully committed to Tax Transparency and is providing its members assistance in the implementation of underlying standards.

In the course of the said meeting the ABBL was represented by Camille Seillès and Laétitia Carroz (ABBL) as well as competent subject-matter experts, namely Marilène Marques (Spuerkeess), Jean Bourgmeyer (BIL) and Vincent Marquis (Pictet).

The ABBL provided to the Global Forum a copy of the revised version of its FAQs on the Common Reporting Standard (CRS). The document can be accessed on the ABBL Membernet (members only) via the following link.

 Forthcoming engagement will relate to the reporting of crypto-asset transactions, e-money products and Central Bank Digital Currencies under DAC 8.

We thank the members of our delegation and the members involved in the update of this guidance for their valuable input and for the great team work.

Background

The Global Forum is the international body monitoring the implementation of the international standards on transparency and the exchange of information for tax purposes and reviews the effectiveness of their implementation by participating jurisdictions.

The Global Forum carries out peer review processes to ensure that the standards on transparency and the exchange of information for tax purposes are properly implemented and on the basis of a level playing field.

With respect to the Automatic Exchange of Information (“AEOI”) Standard, the Global Forum has already reviewed the domestic and international legal frameworks in place, with report having been published at the end of 2022. As a result of this assessment, Luxembourg was awarded an ‘In Place’ rating, which attests to the full compliance of Luxembourg’s legal framework with the international standard of the OECD Common Reporting Standard (“CRS”).

The Global Forum is now conducting in depth reviews of the implementation in practice of the AEOI Standard. This “second round” of AEOI reviews commenced at the start of 2023.

In this context, the ABBL has been invited to contribute to the exchanges during a dedicated meeting.

The Assessment Team was composed of a representative from Switzerland, Iceland and the Global Forum Secretariat.

ABBL contribution to the on-site visit of Luxembourg by the Global Forum

The ABBL met on 23 November 2023 the assessment team of the Global Forum to discuss the implementation in Luxembourg of the Automatic Exchange of Information Standard.

In the course of the said meeting the ABBL was represented by Camille Seillès and Laétitia Carroz (ABBL) as well as competent subject-matter experts, namely Marilène Marques (Spuerkeess), Jean Bourgmeyer (BIL) and Vincent Marquis (Pictet).

After a brief introduction presenting the Luxembourg banking landscape and our work on the Common Reporting Standard, we emphasized the qualitative exchanges with the Luxembourg tax authorities in the implementation of the standard as well as the significant resources invested by our sector for the implementation of the standard since 2015.

Topics discussed included the challenges faced by financial institutions in implementing CRS requirements and the responses to these challenges, due diligence procedures and preventing circumvention of CRS due diligence and reporting.

The ABBL provided to the Global Forum a copy of its CRS-related FAQs, which includes 64 questions and answers on specific points of attention identified in relation to the implementation of the CRS in Luxembourg. This technical guidance complements the guidance issued by international (OECD) and local tax authorities and is widely recognized as a leading source on the market. The document can be accessed on the ABBL Membernet (members only) via the following link.

Our assessment is that this exchange has been positively received by the Global Forum and demonstrated the high-level of compliance and commitment of the banking sector in Luxembourg towards the effective implementation of the automatic exchange of financial account information.

Next steps

• It is anticipated that the Global Forum will release the results of its review in 2025.
• The ABBL shall continue to monitor closely further developments related to the automatic exchange of information for tax purposes.
• Forthcoming engagement will relate to the reporting of crypto-asset transactions, e-money products and Central Bank Digital Currencies under DAC 8.