"Welcome to the new era"

The automatic exchange of information will be introduced from 2014, which is intended to combat tax evasion and strengthen the trustworthiness of international tax systems. The OECD has developed a new reporting standard, supported by the G20 and the EU. In future, financial institutions such as banks and insurance companies will have to report account movements and balances to national tax authorities, which will automatically pass this information on to foreign authorities. The standard is based on FATCA, but focuses on the residency of the beneficial owners and does not include withholding taxes. Over 40 countries, including Luxembourg and the Cayman Islands, have agreed to participate. Liechtenstein has announced bilateral agreements. The G20 summit will clarify the technical details of implementing the standard. In addition to the exchange of information, Liechtenstein financial intermediaries must implement other regulations such as the EU Money Laundering Directive and FATF recommendations by 2017.

Topics in the publication

• Automatic exchange of information (AEOI)
• OECD reporting standard
• International cooperation
• Regulation and implementation
• Technical and legal challenges
• Future prospects
• Criminal law implications
• Support from international companies