CRS & FATCA

What is the Common Reporting Standard (CRS)?

In 2014, the Organisation for Economic Co-operation and Development (OECD) published an international standard for the automatic exchange of financial account information. The so-called Common Reporting Standard (CRS) is a regulatory reporting requirement for financial institutions in participating jurisdictions (currently over 100 jurisdictions) aimed at preventing tax evasion. In December 2014, CRS was implemented in the European Union Directive on Administrative Cooperation in tax matters. Consequently, EU member states were required to implement these provisions into national legislation. In Albania, the standard began to apply with the adoption of Law no. 4, dated 31.01.2020.

Client Identification, Documentation, and Reporting Obligations of Financial Institutions

According to Law no. 4, dated 31.01.2020, financial institutions in Albania are required to take necessary measures to identify the country where their clients pay taxes (including individuals, entities, and, in certain cases, controlling persons), as well as the tax identification number of the relevant tax residence jurisdiction. Financial institutions must report financial accounts held by clients who, for tax purposes, are residents of a participating jurisdiction to the General Directorate of Taxation, which may exchange this information with tax authorities of one or more countries where the client (or, in some cases, controlling persons) may be tax residents.

Reportable Data under Albanian Law for CRS

Reporting of financial accounts includes specific data about the account holder (and, in some cases, the controlling person), as well as account information. According to the law, the following information must be reported to the tax authority:
For individuals:- Name  - Address  - Jurisdiction(s) of residence  - Tax identification number(s)  - Date and place of birth  - Account number(s) for savings, treasury, current, and custodial accounts  - Account balance or value at the end of the calendar year or at account closure  - Total gross amount of income, dividends, or other income generated from assets held in the account, as well as total gross proceeds from the sale or redemption of financial assets, paid or credited to the account during the calendar year or other reporting periods  

For entities, information on controlling persons identified according to Law no. 9917, dated 19.05.2008, “On the Prevention of Money Laundering,” must be reported:

• Name
• Address
• Jurisdiction(s) of residence
• Tax identification number(s)
• Date and place of birth  

Excluded Accounts

The legislator has defined specific exceptions for accounts that are not considered reportable financial accounts.

Non-reportable Clients

Certain categories of clients are exempt from being classified as “reportable persons.” These include:

• Financial institutions
• Government entities
• International organizations
• Central banks
• Corporations whose shares are regularly traded on one or more regulated securities markets (or related entities)  

Albania is committed to participating in the Automatic Exchange of Information under the OECD standard (AEOI) and to implementing CRS domestically.

Starting from 11.03.2020, all financial institutions established in Albania are required to implement procedures and measures to fulfill obligations under Law no. 4, dated 31.01.2020. Consequently, all clients wishing to open a new account will be required to submit a valid Self-Certification to verify their tax residence and tax identification number(s). In certain cases, even clients with pre-existing accounts who do not open a new account may be asked to provide a valid Self-Certification to clearly determine their tax residence(s) and tax identification number(s). Generally, the information clients must provide regarding the TIN relates to tax obligations on income in their tax residence country.

Mandatory Self-Certifications for All New Accounts/Clients

It should be emphasized that the obligation to provide a valid Self-Certification applies to all clients, regardless of their tax residence, including clients exclusively tax resident in Albania. If clients are unsure about their tax residence, they should consult their tax advisor to clarify their tax residence(s). It is important to note that Raiffeisen Invest is not authorized to provide tax or legal advice. Further information about the OECD Common Reporting Standard can be found on the OECD Automatic Exchange Portal. The self-certification forms can be downloaded from the links below. After completion, please sign and send them by mail or scanned via email to the bank employee who assisted you (Authorized Agent) or to the email address provided.

CRS – Forms

- Self-Certification for Individuals

- Self-Certification for Entities  

Additional Documents and Links

- Personal Data Protection

- OECD Standard for the Automatic Exchange of Financial Account Information

- Tax Procedures in the Republic of Albania

What is FATCA?

FATCA (Foreign Account Tax Compliance Act) is part of U.S. legislation, enacted on March 18, 2010, and effective since July 1, 2014. FATCA is a regulatory requirement that obliges foreign financial institutions to identify and report their U.S. clients.

Raiffeisen Invest sh.a., as a subsidiary of Raiffeisen Bank Albania and part of the Raiffeisen Bank International network, recognizes the importance of FATCA and operates in compliance with its requirements. Compliance with client identification and reporting obligations is based on obtaining their consent.Raiffeisen Invest sh.a. is registered on the U.S. IRS website as a FATCA “Participating Financial Institution,” not covered by an IGA, and has received the GIIN (Global Intermediary Identification Number): 28CWN4.00019.ME.008. For further questions, please contact a FATCA specialist.

FATCA – Forms

• W-9
• W-8BEN
• W-8BEN-E
• W-8IMY
• Consent to Report