The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has fined six financial institutions a total of Dh170,000 for violating the Common Reporting Standard Regulations 2017.
The regulations oversee the global collection and exchange of financial accounts and tax-related information among regulatory bodies. They specify the financial information to be collected and reported by relevant institutions, as well as due diligence procedures to be followed.
The Common Reporting Standard (CRS) was introduced by the Organisation for Economic Co-operation and Development (OECD) and adopted in the United Arab Emirates in 2017.
“Compliance with the requirements of the CRS is a top priority of the FSRA, as it aligns with our objective to promote and enhance the integrity of the ADGM financial system,” said Emmanuel Givanakis, CEO of the FSRA at ADGM. “We are steadfast in our commitment to take regulatory action against practices intended to circumvent tax reporting”.
The penalties imposed by FSRA address various failures, including the failure to comply with due diligence procedures, maintain records of due diligence performance, report required information accurately and completely, and submit the necessary annual information return.
