Crown Dependencies Sign FATCA Type Deal with Switzerland
Isle of Man, Jersey and Guernsey have signed joint declarations on automatic exchange of information (AEOI) with Switzerland.
AEOI is not new. Many jurisdictions have entered into Tax Information Exchange Agreements with other jurisdictions; the USA introduced FATCA in 2010 which has led to many intergovernmental agreements for exchange of information which will start in 2016. Next, the OECD introduced the Common Reporting Standard of which over 90 countries have signed up for and reporting starts in 2017.
This additional agreement between the Crown Dependencies and Switzerland demonstrates Switzerland’s updated sense of openness following years of financial secrecy. Switzerland is now playing catch up with other financial centres, such as the Isle of Man who have been leading the way in transparency for many years.
We reported back in 2013 stating that was the year that financial secrecy had died, but there appears to still be one major unwilling participant that has yet to commit to the sharing of information with other jurisdictions, the USA.