OECD Crypto-Asset Reporting Framework (CARF) & 2023 CRS Update

Document Overview

Summary and analysis of the official DITC document: OECD Crypto-Asset Reporting Framework (CARF) & 2023 CRS Update.

Key Concepts Covered

• Common Reporting Standard (CRS)
• FATCA
• Self-Certification
• Reporting Financial Institution
• Reportable Jurisdiction
• Penalties and Enforcement

Deadlines & Timelines Mentioned

• The OECD Recommendation on the International Standards for Automatic Exchange of Information in Tax Matters [ OECD/LEGAL/0407] was adopted by the OECD Council on 15 July 2014 and revised on 8 June 2023.
• Finally, the Recommendation , revised by the Council on 8 June 2023 under the new name OECD Recommendation on the International Standards for Automatic Exchange of Information in Tax Matters, is contained in an annex to this document.
• Further, taking into account the October 2021 updated guidance of the FATF on virtual asset service providers, the Commentary clarifies the scope of application of the CARF to certain decentralised exchanges.
• The due diligence procedures build on the self-certification-based process of the CRS, as well as existing AML/KYC obligations enshrined in the 2012 FATF Recom mendations, including updates in June 2019 with respect to obligations applicable to virtual asset service providers.
• The term “Controlling Persons” must be interpreted in a manner consistent with the 2012 Financial Action Task Force Rec ommendations, as updated in June 2019 pertaining to virtual asset service providers.
• Whether an individual or Entity exercises such control or sufficient influence should be assessed in a manner consistent with the 2012 FATF Recommendations (as amended in June 2019 with respect to virtual assets and virtual asset service providers) and related FATF guidance.
• Jurisdiction A provides its notifications pursuant to Section 7(1) on 7 June 2025, indicating that it has legislation in effect that requires reporting with respect to 2026.
• The notified Competent Authority should provide a response or an update as soon as possible and no later than 90 calendar days of having received the notification from the other Competent Authority.
• 12 October to 31 December), and USD 100,000 over the first 9 days of the year N+1 (i.e.
• 1 January to 9 January), the rolling average 90 day end-of day account balance or value during a period of 90 consecutive days is (1081)+(100,0009)=900,810/90, i.e.
• Therefore, the threshold is exceeded on 9 January N+1 and the Depository Account is not an Excluded Account as of that day.
• Note 1 The OECD Recommendation on the International Standards for Automatic Exchange of Information in Tax Matters [OECD/LEGAL/0407] was adopted by the OECD Council on 15 July 2014 and revised on 8 June 2023.

Document Snippet

International Standards for Automatic Exchange of Information in Tax Matters CRYPTO‑ASSET REPORTING FRAMEWORK AND 2023 UPDATE TO THE COMMON REPORTING STANDARD International Standards for Automatic Exchange of Information in Tax MattersJune 2023 International Standards for Automatic Exchange of Information in Tax Matters CRYPTO‑ASSET REPORTING FRAMEWORK AND 2023 UPDATE TO THE COMMON REPORTING STANDARD The Crypto-Asset Reporting Framework (CARF) and a set of amendments to the Common Reporting Standard (CRS), along with associated Commentaries and exchange of information frameworks (collectively referred to as the International Standards for Automatic Exchange of Information in Tax Matters), were approved by the OECD Committee on Fiscal Affairs over the course of 2022/2023 [CTPA/CFA(2022)16 and CTPA/CFA(2023)5]. The OECD Recommendation on the International Standards for Automatic Exchange of Information in Tax Matters [ OECD/LEGAL/0407] was adopted by the OECD Council on 15 July 2014 and revised on 8 June 2023. For access to the official and up-to-date text of the Recommendation, as well as other related information, please consult the Compendium of OECD Legal Instruments at http://le...