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Hansuke Consulting Limited is registered in England and Wales number 10136213 with its registered office at: 71-75 Shelton Street, London WC2H 9JQ. Hansuke Consulting Limited is an accredited and regulated member firm of the Institute of Chartered Accountants in England and Wales (ICAEW).

 

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Alerts

Kuwait acts as the Gulf trailblazer for CRS

19 August 2016

Kuwait signs the international CRS agreement.

 

The OECD has announced that Kuwait is the 83rd signatory to the CRS Multilateral Competent Authority Agreement ("CRS MCAA"). This means that they have committed to the first information exchange in relation to financial accounts maintained by their domestic FIs in 2018.

 

Whilst this is subject to implementation in local law, it means that Financial Institutions in Kuwait will need to have updated their on-boarding procedures to be able to capture relevant details from account holders with effect from 1 January 2017. They will also need to establish which products they offer will be in scope and plan their remediation review of pre-existing accounts.

 

When developing their CRS compliance plans, FIs in Kuwait may wish to bear in mind the requirement to provide a “Certificate of Compliance” with their obligations under the Intergovernmental Agreement that country has entered into with the US to implement the Foreign Account Tax Compliance Act (“FATCA”) to the Ministry of Finance by 30 November 2016. However, they should be aware of certain subtle differences between the two regimes.

 

We anticipate that the other members of the Gulf Co-operation Council (“GCC”) are likely to follow Kuwait’s lead in signing the MCAA. Already, Saudi Arabia, the UAE, Bahrain and Qatar have publicly indicated that they intend to sign the CRS MCAA ready for a “go-live” date of 1 January 2017. FIs in these jurisdictions should therefore also consider their plans as a matter of urgency given that the deadline is less than 20 weeks away.

Contact us

Ali Kazimi

Managing Director

alikazimi@hansuke.co.uk

Tel: +44 (0) 203 865 0626

Mohsin Talati

Senior Manager mohsintalati@hansuke.co.uk Tel: +44 (0) 203 865 0625

This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Hansuke Consulting Limited would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. Hansuke Consulting Limited accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication.