Common Reporting Standards (CRS)

Please click the following links for instructions of the:
SKN FATCA Manual V1.1
SKN FATCA Portal Guide

For CRS enrollment form please click here

For CRS portal please click here

For Authorization Letter please click here

St Kitts and Nevis committed to implementing CRS and enacted legislation to give effect to the standard.

The Common Reporting Standard (Automatic Exchange of Financial Account Information) Act No. 13 of 2016 was passed in the National Assembly on 13 December 2016. The Act’s accompanying Common Reporting Standard Regulations (SRO No. 32 of 2016) were gazetted on 29 December 2016.

The Act gives effect to the Convention on Mutual Administrative Assistance in Tax Matters and makes the CRS legally enforceable in the Federation. The legislation requires financial institutions to collect, and report specified information on certain financial accounts as prescribed by the Regulations. It also requires compliance with OECD due-diligence procedures and authorises the Financial Secretary or the Secretary’s authorised representative (the St Kitts-Nevis Inland Revenue Department, or SKNIRD) to serve as the Competent Authority. The Competent Authority administers and enforces the provisions of the CRS, may request information from reporting financial institutions and may inspect their premises to verify compliance.

• Common Reporting Standard Act No 13 of 2016
• Common Reporting Standard Regulations SRO No 32 of 2016
• Common Reporting Standard (Amendment) Regulations SRO No 12 of 2018
• Common Reporting Standard (Amendment) Regulations SRO No 7 of 2018
• Common Reporting Standard (Amendment) Regulations SRO No 40 of 2020
• Common Reporting Standard Act Chap 21.22 Revised 31 Dec 2017
• Common Reporting Standard Act Chap 21.22 Revised 31 Dec 2020

• St. Kitts and Nevis Common Reporting Standard CRS Guidelines
• Common Errors in CRS and FATCA Reports and Mitigation
• Citizenship and Residency by Investment (CBI/RBI) Schemes and their Implications for CRS Compliance
• Guidance and Controlling Persons

1. What is the Common Reporting Standard (CRS)?
   The Common Reporting Standard (CRS) is a global framework for the automatic exchange of financial account information between tax authorities, developed by the Organisation for Economic Co-operation and Development (OECD). It requires financial institutions to collect and report information on account holders who are tax residents in other jurisdictions, helping combat tax evasion.
2. Does CRS apply in St. Kitts and Nevis?
   St. Kitts and Nevis is a participating CRS jurisdiction, with automatic exchange relationships in place with many jurisdictions. The country began exchanging CRS information in 2018 with 2017 data. CRS compliance is mandatory in St. Kitts and Nevis.
3. What is the legal basis for CRS in SKN?
   CRS is implemented through domestic legislation, including the Common Reporting Standard (Automatic Exchange of Financial Account Information) Act and Regulations, which grants the Competent Authority powers to administer and enforce compliance. The Inland Revenue Department (IRD) is the designated Competent Authority responsible for administering CRS legislation, receiving and validating reports from Reporting Financial Institutions, exchanging information with partner jurisdictions and monitoring and enforcing compliance.
4. What are “Reporting Financial Institutions”?
   A Reporting Financial Institution is any SKN-based financial institution that is not classified as a Non-Reporting Financial Institution under the law. These entities must perform due diligence and submit CRS reports annually.
5. How to identify reporting financial institutions?

   To determine whether an entity is required to report under CRS, the Act, Regulations and the CRS Implementation Handbook outline a four step test:

   1. Is it an entity? Only “entities” can be reporting financial institutions. The term is broad and includes legal persons and legal arrangements such as corporations, partnerships, trusts and foundations.
   2. Is the entity in a participating jurisdiction? Generally, entities resident in St Kitts and Nevis, their branches located in the Federation and branches of foreign entities operating in the Federation fall within the jurisdiction’s reporting nexus.
   3. Is the entity a financial institution? Reporting Financial Institutions (RFIs) under CRS include:
      • Depository institutions – savings banks, commercial banks, savings and loan associations and credit unions;
      • Custodial institutions – custodian banks, brokers and central securities depositories;
      • Investment entities – entities engaged in investing, reinvesting or trading in financial instruments or providing portfolio management or asset management services; and
      • Specified insurance companies, life insurance companies that issue cash value insurance contracts.
   4. Is the entity a non-reporting financial institution? Certain low risk entities are specifically excluded from reporting because they pose little risk of being used to evade tax. Schedule 2 of the Act lists government entities, international organisations, central banks, certain retirement funds, qualified credit card issuers, exempt collective investment vehicles, trustee documented trusts and other low risk institutions.

   Entities that satisfy the first three tests and are not excluded are Reporting Financial Institutions and must comply with the CRS obligations.

6. What are the main obligations of Reporting Financial Institutions under CRS?
   Reporting Financial institutions must:

   • Conduct Due Diligence – Identify account holders’ tax residency using self-certification and account review procedures.
   • Identify Reportable Accounts held by non-resident individuals and certain entities controlled by non-residents
   • Report Information annually to the IRD for exchange with partner jurisdictions.
   • Maintain proper records.
7. What is a “Reportable Account”?
   A Reportable Account is a financial account held by:

   • A person who is tax resident in a reportable jurisdiction, or
   • A passive non-financial entity (Passive NFE) with one or more controlling persons who are tax resident in a reportable jurisdiction.
8. Who is a “Reportable Person”?
   A reportable person is an individual or entity that is resident for tax purposes in a reportable jurisdiction. When an account holder is an entity, the Financial Institutions must identify any controlling person (a natural person who exercises control over the entity, for example, the settlor, trustee, protector or beneficiary of a trust) and determine their tax residency.
9. What information must be reported to the IRD?
   Under Section 5 of the Act, Reporting Financial Institutions must collect and report required information in respect of certain financial accounts as prescribed by the Regulations. Reporting Financial Institutions must report:

   • Name, address, jurisdiction(s) of tax residence
   • Tax identification number (TIN)
   • Date of birth (for individuals)
   • Account number and financial institution details
   • Account balance/value
   • Income generated (interest, dividends, gross proceeds, etc.)
10. What is a “self-certification”?
    A self-certification is a declaration provided by an account holder confirming their tax residency status and Tax Identification Number(s) (TIN).

    Financial institutions must obtain this information when opening accounts or when circumstances change.

11. When are CRS reports due in SKN?
    CRS returns are due annually by May 31 following the end of the reporting period.
12. How are CRS reports submitted?
    Reports must be submitted electronically through the IRD’s Automatic Exchange of Information (AEOI) Portal.
13. What are Reportable Jurisdictions?
    A reportable jurisdiction is one with which St. Kitts and Nevis has an agreement to exchange financial account. Reporting Financial Institutions must check whether an account holder (or controlling person) is resident in a reportable jurisdiction before reporting.
14. What are “Participating Jurisdictions”?
    Participating Jurisidictions are jurisidictions that have agreed to exchange CRS information and have legal frameworks in place for AEOI. There are 120+ participating jurisdictions globally.
15. Are there entities exempt from reporting?
    Certain entities are classified as Non-Reporting Financial Institutions, including as listed in FAQ 5:
16. What accounts are excluded from CRS?
    • Some account types are excluded from reporting, such as:
    • Certain retirement or pension accounts
    • Low-risk accounts as defined by law
17. How does the IRD ensure confidentiality of information?
    All CRS information is:

    • Protected under domestic confidentiality laws
    • Exchanged using secure international systems
    • Used solely for tax compliance purposes

    Persons involved in administering the Act must treat information received as confidential and only disclose it for the purposes of administering or enforcing the Act; unauthorised disclosure is an offence punishable by fines and imprisonment.

18. What are the penalties for non-compliance?
    Noncompliance with CRS obligations carries significant penalties. A Reporting Financial Institution that fails to file as required is liable to a penalty up to EC$100,000. Making false statements or omissions attracts a penalty of EC$30,000 per failure. Failure to comply with the Competent Authority’s requests or due diligence procedures can also result in penalties up to EC$100,000, with additional monthly penalties for continued noncompliance.

    The Act provides a right of appeal against penalties, and penalties may be waived if the institution shows a lawful or reasonable excuse for the failure. (Penalties are defined in CRS legislation)

19. How does CRS differ from FATCA?
    CRS is a multilateral global standard, while FATCA is a United States-specific reporting regime.

    Both frameworks require financial institutions to identify and report certain accounts.

20. What is the benefits of CRS implementation?
    Adopting the CRS helps St Kitts and Nevis comply with international standards and reduce opportunities for offshore tax evasion. By receiving account information on residents’ foreign holdings and exchanging information with other jurisdictions, SKNIRD can better enforce tax laws and improve revenue collection. The transparency promoted by CRS also enhances the Federation’s reputation in international financial markets, supporting its offshore services sector and promoting responsible financial behaviour.
21. What should Financial Institutions do to remain compliant?
    Best practices include:

    • Establish robust CRS compliance policies and procedures
    • Train staff on due diligence procedures
    • Maintain accurate records and documentation
    • Data validation and error-checking
    • Ensure timely and accurate reporting
    • Ongoing monitoring and audits
22. Where can further guidance be obtained?
    Additional information and guidance are available from:

    • CRS legislation and regulations – The Common Reporting Standard (Automatic Exchange of Financial Account Information) Act No. 13 of 2016 and the Common Reporting Standard Regulations (SRO No. 32 of 2016), together with subsequent amendments, are available on the SKNIRD www.sknird.com and the Law Commission https://lawcommission.gov.kn/ websites.
    • The International Taxation Unit at aeoi.skn@ird.gov.kn.