In our recent blog (The Common Reporting Standard ('CRS'): The annual inter country reporting of financial information and the implications for beneficiaries of undisclosed off-shore assets) we discussed the implications of the OECD Common Reporting Standard for Irish resident beneficiaries of offshore bank accounts and other financial assets.
Currently over 90 countries have agreed to the automatic sharing of information. Interestingly the United States is not (yet) a signatory to the standard. This raises the possibility of locating assets in the United States in order to avoid disclosure of same as discussed on Bloomberg in recent montes.
The Obama administration say that they would like to sign up to CRS. They have two major problems before they can do so. The first is that Congress has made clear that it is not going to pass any more of Mr Obama's legislation, so it is hard to see how this can happen during Mr Obama's US presidency. The second is that CRS undermines banking confidentiality as it requires a country's domestic banks to give it's tax authority specified information in relation to accounts held by residents of other CRS assenting countries, and in the USA bank regulation is split between the Federal and State Government and most States do not take kindly to the Federal government seeking to interfere in their affairs.