FATCA and Common Reporting Standard (CRS) Compliance

The United States introduced Foreign Account Tax Compliance Act (FATCA) in 2010 to strengthen reporting on offshore assets held by US taxpayers through foreign accounts and non-US entities.

In response Common Reporting Standard (CRS) was adopted by several countries, including the United Arab Emirates (UAE), creating annual reporting obligations for financial institutions.

In the UAE, reporting financial institutions must assess their classification, complete due diligence, register on the Ministry of Finance portal, and submit accurate annual FATCA/CRS reporting, including nil returns where applicable.

Nexdigm helps entities navigate these requirements with practical support across classification, due diligence, reporting, and documentation.

Our Services

This service is relevant for UAE financial institutions, including entities in DIFC and ADGM, that must determine their FATCA/CRS classification and reporting obligations.

• Entity classification
  Assess whether an entity is a financial institution and whether FATCA/CRS compliance applies.
• Onboarding of account holders
  Draft self-certification forms to collect required reporting information.
• Registration/deregistration
  Support registration and deregistration on IRS and local portals.
• Due diligence procedures
  Set up procedures for effective implementation of FATCA/CRS requirements.
• Reporting assistance
  Support FATCA-CRS return filing, self-assessment forms, and CRS risk assessment questionnaire.
• Policy & procedure documentation
  Draft detailed compliance policies and procedures.
• Audit questionnaire support
  Assist with responses to the audit questionnaire from the UAE tax authorities.

Our Credentials

• UAE entity classification and impact analysis, including DIFC and ADGM structures.
• FATCA/CRS return filing support for Cayman Islands entities.
• Due Diligence and reporting support for Indian entities

Need help with FATCA or CRS compliance in the UAE? Speak to our team for entity classification, reporting support, and documentation assistance.