Common Reporting Standard (CRS)

In order to combat tax evasion and ensure the transparency and reliability of tax systems, governments of various countries have introduced new rules under which financial institutions are required to collect and report certain information regarding account holders. These rules are known as the Common Reporting Standard (CRS), and we would like to explain how they may affect you.

Under CRS, we are required to determine your tax residency country, which is usually the country where you pay income tax or corporate tax. We will use the information already available, however, if necessary, we may request additional information from you.

If your tax residency country is not the Republic of Armenia, we are obligated, in accordance with legislation of the Republic of Armenia, to report certain information about you and your accounts to the RA tax authorities, which may subsequently share this information with the tax authority of your country of tax residence.

Frequently Asked Questions /FAQs/
What is the Common Reporting Standard (CRS)?

The Common Reporting Standard (CRS) is a uniform standard for reporting, due diligence, and exchange of financial account information, developed by the Organization for Economic Co-operation and Development (OECD). It requires financial institutions to identify the tax residency of their customers and report the relevant information to the tax authorities. Its purpose is to prevent tax evasion and strengthen the transparency of global tax systems.

Why does Converse Bank require my tax information? Under the domestic/national/ legislation of countries participating in CRS, financial institutions are required to collect and report information regarding their customers’ tax residency to the tax authorities. Accordingly, we are obliged to collect this information and, if necessary, provide it to the relevant tax authorities of the Republic of Armenia.

Who is considered reportable under CRS? CRS focuses on the tax residency of customers. If you are a tax resident of another country and have an account in the Republic of Armenia, information about you and your accounts is subject to reporting to the RA tax authorities, which may in turn share this information with the tax authority of your country of tax residence.

What is a self-certification under the CRS standard?
A self-certification is a document through which a customer discloses their tax residency. This document must be completed by the customer in order to determine their tax residency status.
At a minimum, the self-certification includes:

• The customer’s identification details
• The country or countries of tax residency (if the individual has dual or multiple tax residency)
• The Tax Identification Number (TIN) in the country or countries where the customer is registered as a tax resident

Why do I need to confirm my tax residency?
When opening a new account or when your personal details change, under the CRS standard the customer must personally disclose information about their tax residency to the bank. This is done through the self-certification document.

What is the difference between FATCA and CRS?
FATCA and CRS are different systems. FATCA applies to U.S. citizens, whereas CRS is broader and applies to all customers to determine their tax residency. Therefore, additional information may be required.

How is tax residency determined?

It depends on your place of residence and other personal circumstances. As different countries have different rules, it is recommended that you consult a tax advisor.
If I live in Armenia and pay taxes here, why do I need to provide this information? In accordance with CRS requirements, we are legally obliged to determine the tax residency status of all our customers, even if they are tax residents of the Republic of Armenia. However, in such cases, as a rule, your information is not reported to the Armenian tax authorities.

Are all financial institutions required to comply with CRS?
Yes, all banks and other financial institutions are required to comply with these rules.

Is my information protected?

Your information is maintained in accordance with strict confidentiality and security standards.

Which countries participate in CRS?

Many countries have joined CRS. You can visit the OECD CRS portal to view the list of participating countries and the information exchange timelines. The list of partner countries of the Republic of Armenia is available on the website of the State Revenue Committee of the Republic of Armenia.