AEIO – Automatic Exchange of Financial Information
CEI – Common Exchange of Information
The Common Exchange of Information refers to the sharing of financial information between countries, in order to promote greater transparency and prevent tax evasion. Under the CRS, financial institutions are required to collect information on their clients’ tax residency and report it to the relevant tax authorities. This information includes details such as account balances, interest income, and dividends received.
CRS – Common Reporting Standard
The Common Reporting Standard (CRS) is a global standard for the automatic exchange of information on financial accounts between tax jurisdictions. It was developed by the Organisation for Economic Co-operation and Development (OECD) in 2014 to combat tax evasion and promote tax transparency. As of 2023, more than 100 jurisdictions have committed to the implementation of CRS.
CDD – Customer Due Diligence
Customer Due Diligence (CDD) is a crucial process that banks in Hong Kong are required to follow to ensure that their customers are not involved in any illegal or unethical activities such as money laundering, terrorism financing, and fraud. The Hong Kong Monetary Authority (HKMA) has issued guidelines to banks operating in Hong Kong to follow the CDD process.
SPV – Special Purpose Vehicle
An SPV is a legal entity that is created for a specific purpose, such as holding assets or raising capital. The purpose of the entity is defined in its memorandum and articles of association, and it has limited liability. An SPV is often used in complex transactions to isolate risk, protect assets, or facilitate financing.
TIN – Tax Identification Number
A Tax Identification Number (TIN) is a unique identification number assigned to individuals or businesses for tax purposes. The TIN allows tax authorities to track the tax activities of an individual or business and ensure that they are paying the correct amount of taxes.