India has joined MCAA on Automatic Exchange of Financial Account Information on 3rd June 2015. In terms of the MCAA, all countries which are a signatory to MCAA, are obliged to exchange a wide range of financial information.
Additionally, Governments of India and USA have signed an agreement to improve international tax compliance and to implement the FATCA in India.
Further, for combating the problem of offshore tax evasion, avoidance and stashing of unaccounted money abroad, it requires cooperation amongst tax authorities. Hence, the G20 and OECD countries worked together and have developed a Common Reporting Standard (CRS) on Automatic Exchange of Information (AEOI).
As per above agreements and towards compliance with tax information sharing laws, such as FATCA/CRS, financial institutions of the “source” jurisdiction are required to collect and report information to their tax authorities about account holders “resident” in other countries, such information having to be transmitted “automatically’ on yearly basis. The information to be exchanged relates not only to individuals but also to shell companies and trusts having beneficial ownership or interest in the “resident” countries. This also mandates all financial intermediaries to seek additional personal, tax and beneficial owner information and certain certifications and documentation from account holders. They are also obliged to share information of your account with relevant tax authorities and other competent authorities.
Vide SEBI Circular CIR/MIRSD/2/2013 dated 24th January 2013, SEBI has issued guidelines on identification of Beneficial Ownership and mandated all Intermediaries to identify and verify such beneficiary owners.
Vide AMFI Circular dated 18th September 2015, following information has been made mandatory w.e.f. 1st November 2015 for new investors to the respective Fund/from 1st January 2016 for the existing investors
What do you need to do as an investor?
The following information is mandated as part of the above requirements. All investors [both Individuals and Entities] are required to fill-up this additional information in the relevant Declaration form that contains FATCA-CRS Declaration, Supplementary KYC Information and UBO Declaration and submit to CAMS/CAMS serviced Mutual Fund AMC branches.
- Additional KYC Information
- Ultimate Beneficiary Ownership [UBO] declaration from Non-Individuals
Accordingly, following information is mandated as part of the above requirements:
- Country of Birth/Incorporation
- Place of Birth/Incorporation
- Address Type [Residential or Business, Residential, Business, Registered Office] for the KYC registered address
- Applicant Income Slab details
- Net Worth details
- Information about PEP [Politically Exposed Person & its relatives]
- Information on specific Corporate services [applicable for Non-Individuals]
- Information about Ultimate Beneficiary Owner(s)/Controlling Person(s) [applicable for select category of Non-Individuals]
- If your [investor] tax residency is other than India, then following information for all countries in which you are resident for tax purposes is required:
- Country of Tax Residency [also include USA, where the individual is a citizen/green card holder of the USA]
- Tax Identification Number [If not available, kindly provide its functional equivalent]
- Identification Type [TIN or Other, to be specified)]
CAMS has enabled online updation facility in www.camsonlone.com
Forms are available at the counters or can be downloaded from www.camsonline.com
For more details, please write to firstname.lastname@example.org or call our toll-free support number 1800-200-2267 and 1800-419-2267 from anywhere in India.