Automatic Exchange of Information (AEI)

What is AEI?

On January 1, 2017, the Automatic Exchange of Information (AEI) was implemented in Europe. The first submission of information by the Reporting financial institutions was done in April 2017 and first exchange of data between the tax authorities of all EEA participating countries - in September, 2017. Most EEA countries adopted the AEI as of 2017, while some countries, like Switzerland, Austria and others will make the first exchange in 2018. To see this list of more than 100 participating countries and their first exchange of tax information, please check In the wake of the financial crisis, the G20 had an increased interest in establishing a global standard, which in September 2013 led to a formal request to the Organisation of Economic Cooperation and Development (OECD) to develop a common reporting standard as part of the global effort to combat tax evasion. Under this standard, participating countries commit to the bilateral exchange of information relating to the financial accounts, including bank accounts, e-money accounts and current accounts, of individuals and entities that hold assets in a country outside their tax residency on the basis of bilateral or multilateral agreements. The EU accepted the Council Directive 2014/107/EU of 9 December 2014 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation. The Directive extended the cooperation between EU tax authorities to automatic exchange of financial account information and effectively incorporated the Standard for Automatic Exchange of Financial Information in Tax Matters (Common Reporting Standard). Those regulations require all EEA financial institutions, including the Financial institutions servicing the LeoPay Platform, to carry out due diligence procedures and to report automatically clients and account information to the tax authorities.

Which information will be exchanged?

For “reportable accounts” of the Financial institutions servicing the LeoPay Platform – the accounts of individuals or entities that are tax residents of a Participating Jurisdiction other than the Jurisdiction in which the Financial Institution is based, the following information will be automatically reported: identifying information (e.g. name, taxpayer identification number, date of birth, tax residency), as well as financial account information (e.g. account number, account balance as of the end of the previous year, gross earnings). The term “reportable account” means an account held by one or more reportable persons (meaning individuals or entities) or held by a passive non-financial entity with one or more controlling persons that are reportable persons, provided they have been identified as such pursuant to the due diligence procedures. All EU and EEA financial institutions are required to report the above information to their local tax authorities on an annual basis for all clients who qualify as reportable-person. The local tax authorities will then exchange the information with the tax authorities of the client’s jurisdiction of residence for tax purposes. To determine the status of a reportable account we may request documents from you or send you a declaration to fill. Please be assured that client confidentiality remains key and that all data will be exchanged using secure processes and procedures, and will only be used for tax purposes.

How our partner Financial Institutions supporting their clients?

Our partner Financial Institutions have made every effort to implement the AEI in a way that is as customer friendly and transparent as possible.

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