The FAQ addresses the question as to what action should be taken by the Financial Institution if the client (the beneficiary and/or the persons directly or indirectly controlling them) has been identified with tax residency in a jurisdiction that grants "citizenship/residence in exchange for investment"?
For more on these schemes see the OECD's official website in the relevant section http://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/residence-citizenship-by-investment/
The FAQ states that if identifiable persons are found to have a tax residency in such jurisdictions, additional information should be requested from them:
- Whether tax residency has been obtained under the "citizenship/residence-for-investment" regime;
- Whether the person identified resided 90 or more days in any other jurisdiction in the preceding calendar year;
- Whether the person identifiable is a tax payer for personal income in other jurisdictions and in which jurisdictions have they filed the relevant tax returns;
- In what jurisdiction is the center of their vital interests.
The results of this review should be documented by the Financial Institution and may result in the individual becoming reportable to additional jurisdictions.
For more information, please contact consulting@rosemont.mc
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