Centralization of certifications under Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) at KYC Registration Agencies (KRAs)
Summary
SEBI mandates the centralization of FATCA and CRS certifications at KYC Registration Agencies (KRAs) for intermediaries registered under Section 12 of the SEBI Act. Intermediaries must upload new certifications obtained from clients onto KRA systems effective July 1, 2024, while existing certifications must be uploaded within 90 days of implementation. The responsibility for obtaining, verifying, and reporting these certifications rests with the respective intermediaries.
Text
the reporting financial institution (RFI) shall obtain a self-certification from the client, as part of the account opening documentation, to determine the client’s residence for tax purpose.
the regulators are, inter alia, required to issue necessary instructions and guidelines to provide the procedure and manner of maintaining the information by the reporting financial institution (RFI).
the intermediaries, who are RFI, shall upload the FATCA and CRS certifications obtained from the clients onto the system of KRAs with effect from July 01, 2024.
The existing certifications obtained from clients prior to July 01, 2024 shall be uploaded by the intermediaries onto the systems of KRAs within a period of 90 days of implementation of this circular.
The onus of obtaining and reporting the FATCA and CRS certification and related compliances shall lie with the respective intermediaries.
The intermediary shall confirm the reasonableness of such certification based on the information obtained in respect of account opening... and shall update the self-certification, as and when, there is a change reported by the client.
The KRAs shall develop their systems/mechanism, in co-ordination with each other and shall follow uniform internal guidelines/standards, in consultation with SEBI.
This circular is being issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 and Regulation 17 of the SEBI {KYC (Know Your Client) Registration Agency} Regulations, 2011.
Source: SecMarx — Centralization of certifications under Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) at KYC Registration Agencies (KRAs). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.