What Common Reporting Standard (“CRS”) means?
“CRS” is an international regulation against tax evasion and tax fraud, approved by the Organization for Economic Co-operation and Development (OECD) in 2014 at the request of the G20. The regulation is based on the automatic exchange of information between member jurisdictions under the CRS agreement, delegating this responsibility to the Financial Institutions of these countries.
Albania became part of the CRS agreement based on Decision No. 178, dated 09.03.2016 of the Council of Ministers and Law No. 04/2020 dated 30.01.2020 “On the Automatic Exchange of Financial Accounts Information,” committing to implement CRS obligations.
Which are the main obligations of the Bank within the framework of the “CRS” Legislation?
All Financial Institutions in participating jurisdictions, including banks in Albania, are legally required to comply with CRS provisions to collect information about their clients—whether individuals, freelancers, companies, or other legal entities generating financial income—and, in certain cases, any controlling persons.
Financial Institutions (including OTP Bank Albania) are required to report financial accounts, held by clients who are tax residents in a participating jurisdiction, to the General Directorate of Taxes, which may exchange this information with the tax authorities of another country or countries where the client may be a tax resident.
Mandatory Self-Certifications for all Clients
The obligation to complete a valid Self-Certification applies to all clients, regardless of their tax residence, including those who are exclusively tax residents in Albania.
All clients requesting to open a new account, must submit a valid Self-Certification to confirm their tax residence and their Tax Identification Number(s) (TIN).
In certain cases, even existing account holders who do not open a new account will be required to submit a valid Self-Certification to clearly determine their tax residence(s) and TIN(s).
The self-certification form must be completed at one of OTP Bank Albania’s branches!
The bank cannot establish a relationship with a new client if the later refuses to provide CRS documentation!
In case of changes in circumstances, the client is obliged to notify the Bank by completing an updated Self-Certification form specifying their tax residence(s).
For more detailed information on the OECD Common Reporting Standard, visit:
Reportable data under Albanian CRS law
Reporting of financial accounts includes certain data about the account holder (and, in some cases, the controlling person), as well as account details.
The following information must be reported to the tax authority:
For individual clients:
- Name;
- Address;
- Country/countries of tax residence;
- Tax Identification Number(s) (TIN);
- Place and date of birth of the account/ deposit holder;
- Account/deposit numbers or similar products despite the title;
- Account/deposit balance for the relevant year;
- Total gross interest generated during the year, and any other information required by law.
For legal entities (including trusts or partnerships) and their controlling persons, identified in compliance with the provisions of Law no. 9917-2008 changed “For the Prevention of Money Laundering”:
- Legal name of the entity;
- Country of incorporation;
- Current tax residence address (street, number, postal code, city/province, state);
- Tax Identification Number(s);
- Head office address (if different from registration address) (street, number, postal code, city/province, state);
- For controlling persons, data similar to individual clients if they are reportable persons.
Excluded accounts (non-reportable).
The law has also established certain exemptions for accounts that are not reportable, for specific clients that are not defined as “reportable”, including:
- Some categories of financial institutions,
- International organizations,
- Government entities,
- Central Banks,
- Corporations whose shares are regularly traded on one or more established securities markets (or related entities).
What is FATCA?
FATCA (Foreing Account Tax Compliance Act) is U.S legislation announced on March 18,2010, and effective from July1, 2014, Law relating to compliance with tax obligations of accounts managed outside the U.S. for U.S. citizens
FATCA requires foreign financial institutions to report information about direct or indirect income of U.S. taxpayers to the U.S. tax authority (IRS)
After signing an agreement with the U.S. tax authority to implement FATCA requirements, OTP Bank Albania is registered with the IRS as a Reporting Financial Institution and is therefore obliged to identify all accounts held directly or indirectly by U.S. persons.
Compliance with FATCA identification and reporting requirements is based on client consent.
The bank cannot establish a relationship with a new client if they refuse FATCA documentation. For existing clients, accounts will be closed if they continue to refuse FATCA documentation.
Customers obligations
To meet these requirements, all bank clients must complete and sign a Self-Certification form.
This form declares tax residence and TIN(s) or whether the client is a U.S. tax resident.
The form must be completed by all clients, even those with tax residence only in Albania.
The bank relies primarily on this form as a mandatory supporting document.
In case of changes in circumstances, within 90 days, the client must notify the bank by completing an updated Self-Certification form!
If the bank becomes aware that the Self-Certification is incorrect or unreliable, informs the client that is obliged to provide a valid updated form of Self-Certification establishing tax residence (s) or submit documentation (according to the circumstances) supporting the validity of the existing Self-Certification form.
For questions or to obtain the Self-Certification forms, please visit any OTP Bank Albania branch.