CRSaligned

CRSaligned is a term that appears in the context of the Common Reporting Standard (CRS), a global initiative developed by the Organisation for Economic Co-operation and Development (OECD) to combat tax evasion. When financial accounts are described as "CRSaligned," it signifies that the account opening procedures, customer due diligence processes, and reporting mechanisms are in compliance with the requirements of the CRS. This means that financial institutions holding these accounts are equipped to identify the tax residency of account holders and report information about their financial assets to the relevant tax authorities in accordance with international agreements.

The CRS framework aims to ensure that tax administrations have access to information on offshore financial assets held by their residents. CRSaligned accounts therefore contribute to this objective by facilitating the exchange of financial account information between countries. This includes details such as account balances, income generated from financial assets, and sale proceeds of financial assets. Financial institutions that maintain CRSaligned accounts are responsible for implementing robust internal policies and procedures to meet these reporting obligations consistently. The ultimate goal of this alignment is to promote greater tax transparency and discourage the use of offshore financial systems for illicit purposes.