Abu Dhabi, UAE: The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has imposed penalties on six financial institutions totalling AED 170,000 for contraventions of the Common Reporting Standard Regulations 2017 (“the “Regulations”).
The Common Reporting Standard (“CRS”) governs the collection of financial account and tax-related information and its global exchange between international regulatory bodies. It sets out the scope of financial information to be collected and reported by the required financial institutions, in addition to the due diligence procedures to be followed by those financial institutions.
CRS was developed by the Organisation for Economic Co-operation and Development (“OECD”) and established in the United Arab Emirates in 2017.
The actions taken by the FSRA address failures (to the extent applicable in each case) to:
- follow due diligence procedures as required by the Regulations;
- keep records of the performance of due diligence;
- report required information in a complete and accurate manner; and/or
- submit the required annual information return.
Emmanuel Givanakis, Chief Executive Officer of the FSRA at ADGM, said: “ADGM is committed to complying with international standards. The FSRA actively supports the UAE’s commitment to international tax information exchange as part of a broader national agenda to enhance financial transparency. We achieve this through maintaining a robust supervisory framework and enforcement regime. 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. We are steadfast in our commitment to take regulatory action against practices intended to circumvent tax reporting”.
A copy of the FSRA’s CRS Penalty Notices can be found on the ADGM website here.
About Abu Dhabi Global Market (ADGM)
Abu Dhabi Global Market (ADGM) is the international financial centre (IFC) of the capital city of the United Arab Emirates, which opened for business on 21 October 2015. ADGM augments Abu Dhabi’s position as a leading financial centre and a business hub serving as a strategic link between the growing economies of the Middle East, Africa, South Asia and the rest of the world.
Operating within an international regulatory framework based on direct application of The English Common Law, ADGM governs the entire Al Maryah Island and Al Reem Island which is designated as the financial free zone of Abu Dhabi.
ADGM is ranked as one of the most preferred top IFCs in the Middle East and Africa region and named MENA’s largest Fintech hub. Its progressive and inclusive business ecosystem gravitates toward global financial and non-financial institutions while leveraging synergies between ADGM and multiple jurisdictions positioned as one of the world’s most advanced, diverse and progressively governed financial hubs.
For more details on ADGM, please visit www.adgm.com or follow us on Twitter and Instagram: @adglobalmarket and LinkedIn: @Abu Dhabi Global Market (ADGM)
For media queries please contact:
Managing Director Middle East
Corporate Communications, ADGM