AEOI - beneficial owner reporting?

[jfugger]

Found this online, hope its accurate and helpful
Automatic Exchange of Information (OECD) (click on‌ link)

Further there are several loopholes in this framework, which requires further clarifications, but for‍ time being these loopholes creates certain escape routes.

Significant loopholes are:

1. Thresholds:
   Existing entity accounts,⁠ established before December 2015, with a balance of USD 250 000, are not required to⁤ be reviewed, identified or reported.
   
2. "Controlling persons" term:
   International best practice always refers to "beneficial⁣ owner", not "controlling persons". Not always there are controlling persons, i.e., when shareholding is atomised⁢ or is a minority stake.6
   
3. Lack of provisions for Foundations and anstalts
   These type pf︀ vehicles are not covered by specific reporting obligations.7
   
4. Trusts managed by individual Trustee is not︁ considered Financial Institutions
   Trustee for such Trust is not required to report on Settlors and︂ beneficiaries.8
   

 

[negon]

So it means they report every bank account that is opened starting 2016 regardless if‌ the amount hold in these accounts?

 

[dotbloup]

yes, they do... but‍ now we wonder whether they report it to the jurisdiction where the company has been⁠ incorporated and / or the country of the beneficial owner.

For example: you are an⁤ Italian, you own a Belize company and your business bank account is in Poland.
Poland will report the bank account to belize, that's for sure but it will not change⁣ anything for us since corporate tax 0%
Now we wonder whether poland will also report⁢ the bank account to Italy.

 

[Flycatcher]

1. 
   
   Extremely important to point out here that the magic word is "required".⁠ However, nothing forbids the bank from reporting the information even if you have as few⁤ as $1, and I've heard some EU countries plan to make automatication so efficient this⁣ actually happens.
   

 

[dotbloup]

I can give some insights because i worked with a big⁤ UK bank. Banks will not do it because they have spend lots of money paying⁣ people to already report their customers. It can't be done automatically. This costs money and⁢ it is not profitable. Consequently, the banks do the minimum mandatory to be in compliance︀ with the law.

 

[DMX]

I live in central europ, I own an account at EPB in St Vincent Gr.,‌ I asked the bank if they will exchange my details with the tax authorities of‍ my country, here is the answer :

"Euro Pacific Bank reports solely to our regulator,⁠ the St. Vincent and the Grenadines Financial Services Authority (FSA) and at this time we⁤ cannot provide further insight into the evolution of AEOI. If we receive any formal updates⁣ from our regulator, we will disclose them to our clients.

Please consult with a legal⁢ professional to ascertain the answers to these questions.

Kind Regards,
Ann-Marie
Client Services-Euro Pacific Bank︀ "

In others words...nobody know nothing !
I plan to close the account + company︁ to avoid any problem...

 

[negon]

It's going to be difficult to predict the future in the financial world and all‌ the s**t the OECD try to regulate. One thing I have learned so far is‍ to use a service provider of virtual banking systems and that offer a debit card.⁠ They have no obligations to comply to these stupid regulations so far. Furthermore it is⁤ possible to open stealth accounts with such companies that will work much better than a⁣ regular bank account.

The services I consider at the moment are:

• Entropay
  
• Worldcore
  
• Neteller
  
• Skrill
  

There are many more and maybe someone can supply this list with even better solutions⁢ but keeping your money with such services will avoid lots of troubles so far. Another︀ solution is to keep your money in BitCoins or other virtual currency which isn't regulated.︁

 

[DMX]

I asked the bank to close my bank account, I was called by someone, we‌ talked, she asked me why I wanted to close the account(AEOI coming un force), she‍ said to me that they won't exchange any information...who do I have to trust ?⁠

 

[JohnLocke]

That is similar to the guy here http://www.offshorecorptalk.com/thr...nsense-with-the-exchange-of-information.19554 strange it⁤ sounds like they try to hide something or there is something wrong with this information⁣ I doubt the latter is the case.