Details of the second round peer review reports (November 2017)

 

Summaries of the 6 second round peer review reports on the Standard of transparency and exchange of information on request

 

Curaçao

Curaçao received an overall rating of Partially compliant with the international standard of exchange of information on request (EOIR) for the transparency of its entities and its EOI practice over the period 1 January 2014 until 30 June 2016 (two and a half years due to the request for an advanced assessment review). Its rating was already Partially Compliant in the previous period reviewed (2011-2013). Although Curaçao has addressed some recommendations, notably regarding the striking off of dormant companies, serious deficiencies remained in respect of availability of ownership information, access to information and EOI practice. Curaçao’s EOI practice worsened during the period, with EOI requests from its EOI partners not being responded to in a timely manner, but it improved at the end of the review period. Curaçao must also improve the oversight and enforcement mechanisms that are currently insufficient to ensure the availability of ownership and accounting information in all cases. Finally, the Curaçao authorities must ensure that in practice they can get access to information effectively and in a timely manner in all cases, including on information pertaining to international offshore companies. Read the report.

 

Denmark

In its most recent round of reviews, the Global Forum found Denmark to be Largely Compliant with the international standard on transparency and exchange of information upon request. Denmark had been previously rated Compliant in its 2011 peer review report. It was found that while the requirements for the availability of legal ownership and accounting information are adequate, newly enacted legal provisions in Danish law relating to beneficial ownership introduced in this new round of reviews were not fully in line with the standard. Additionally, the review found that oversight of registration and record-keeping requirements related to the availability of ownership information  as well as supervision of banks with respect to the availability of beneficial ownership information was not sufficiently rigorous over the review period (1 July 2013 to 30 June 2016). In terms of exchange of information, the Danish tax authority has the appropriate access powers and have been exchanging information to the satisfaction of peers. Read the report.

 

India

India received an overall rating of largely compliant with the international standard of exchange of information on request (EOIR) for the transparency of its entities and its EOI practice over the period 1 July 2013 to 30 June 2016. Its legal framework is generally in line with the international standard, but some improvements are required to ensure that the new obligations to maintain beneficial ownership information on all the entities and legal arrangements are well monitored in practice. India sends large volume of EOI requests in its policy to crackdown on tax evasion by Indian residents. India must continue its work on improving the quality of the EOI requests that it sends to its partners; notably by continuing to implement its action plan on the matter and good communication with its EOI partners. Its rating was Compliant in the first round of reviews, when these two aspects were not reviewed. Read the report.

 

Isle of Man

The Global Forum concluded that the Isle of Man continues to be Compliant with the international standard on transparency and exchange of information upon request. The Isle of Man’s legal framework for the availability of ownership, accounting, and banking information is in place and legal obligations are subject to proper oversight. The new obligation of availability of beneficial ownership information was previously primarily addressed under the anti-money laundering rules. To address the gap relating to entities that are not required to engage an anti-money laundering obliged service provider, the Isle of Man passed the Beneficial Ownership Act 2012, which now extends obligations to identify the beneficial owner(s) to all relevant entities except for general partnerships. Provisions requiring entities to hold and register information on their beneficial owners. Isle of Man has successfully exchanged both legal and beneficial ownership information in practice. The Isle of Man also addressed a weakness identified in its practice during the last round of reviews, namely the sharing information received under an EOI request with the financial intelligence authority. In terms of exchange of information, the Isle of Man has been commended by peers for its highly efficient and cooperative EOIR practice. Read the report.

 

Italy

Italy was found to be Compliant with the international standard on transparency and exchange of information upon request. This represents an upgrade from the previous overall rating of Largely Compliant as Italy has taken measures to speed up ratification process of its EOI treaties and has maintained an excellent record in terms of ensuring the availability, access and exchange of different types of information. Ownership, accounting and banking information is available in Italy in line with the standard. In particular, Italy's law contains multiple obligations requiring availability of beneficial ownership and apply robust supervisory and enforcement measures to ensure that these obligations are properly implemented in practice. The relevant information is accessible by the tax authorities. Italy has an extensive network of exchange of information partners covering 146 jurisdictions and is heavily involved in exchange of information practice, as demonstrated in the large volume of incoming and outgoing information during the reviewed period (1 October 2013 to 30 September 2016). Italy's exchange of information practice generally provides for effective exchange of information, even though Italy is recommended to monitor measures recently introduced to further streamline its exchange of information processes so that all requests are responded in a timely manner. Read the report.

 

Jersey

The second round peer review reveals the important progress made by Jersey in the implementation of the international standard, leading to the upgrade of its overall rating from Largely Compliant to Compliant with all elements determined to be in place and rated Compliant. Notably, Jersey took the necessary actions to fix deficiencies identified in its 2014 peer review report regarding effective use of information gathering powers, protection of confidentiality and ensuring that requests for clarification do not create unduly delays to the exchange process. Jersey processed 262 requests over its new review period (1 July 2013 – 30 June 2016), which represented almost the double of the requests received during its previous review period (2010-2012), and has been able to respond to almost all of these requests  in a timely manner. The multilateral Convention was extended to Jersey by the United Kingdom in 2014, allowing a large number of jurisdictions requesting information to Jersey. It is believed that EOI activity will continue to increase. Jersey has dedicated appropriated resources to its exchange of information program and is viewed as a cooperative and efficient partner by its peers. Read the report.

 

Related Documents