Common Reporting Standard (CRS)
In September 2016, Pakistan has signed the Multilateral Convention on Mutual Administration Assistance in Tax Matters and became 104th signatory to the Convention. FBR worked closely with local as well as international stakeholders and finalized Common Reporting Rules and notified the same vide S.R.O. 166 (I)/2017 dated March 15, 2017. With this, Pakistan has adopted the global Standard for Automatic Exchange of Financial Account Information in Tax Matters commonly known as the Common Reporting Standard (CRS) as developed by the By Organization for Economic Cooperation and Development (OECD).
SBP vide its BPRD Circular Letter No. 10 of 2017 dated April 19, 2017 advised all Banks to ensure compliance with the CRS rules and take all necessary actions / steps to put in place requisite systems / mechanism.
As a first step, all financial institution are required to start due diligence of customers from July 1, 2017 and obtain Self-Certification from individuals (in case of individual, Joint & Sole-proprietorship Accounts), Entities (Companies including but not limited to partnerships, Private & Public limited, NGOs / NPOs / FIs, etc.) and Controlling Persons (where an entity account holder is treated as a Passive Non-Financial Entity or an Investment Entity located in a non-participating Jurisdiction).
For further details please find below relevant links:
Foreign Account Tax Compliance Act (FATCA)
Al Baraka Bank (Pakistan) Limited has successfully registered with the US–IRS, as a Participating Foreign Financial Institution. Our GIIN is 86IIBW.00011.ME.586. We are fully compliant with FATCA regulations in accordance with the directives of the State Bank of Pakistan. Please contact our Compliance Head for all queries on FATCA related matters.