DAC Reporting - AML On-Line by CubeIQ Limited

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Directive on Administrative Cooperation - DAC is the European Union Council Directive 2014/107/EU of 9 December 2014 (DAC2) amending Directive 2011/16/EU of 15 February 2011 EU (DAC) regarding mandatory automatic exchange of information in the field of taxation.

More information:

DAC2 is a step towards the adoption of a FATCA-like automatic exchange of information mechanism throughout the European Union. Under the automatic information exchange system, the Member States collect data on income earned in their territory by non-resident individuals and automatically transmit the collected data to the authorities where the individuals reside.

The revised directive expands the scope of the automatic exchange of tax information to include interest, dividends, and other income as well as account balances and sales proceeds from financial assets. DAC2 reporting for Automatic Exchange Of Information - AEOI between EU Member States for taxation purposes is based on (actually is the same) the Common Reporting Standard - CRS developed by OECD and therfor it is referred as DAC2/CRS.

EU Member States will start exchanging information automatically under the revised directive for the first time by the end of September 2017 (simultaneously with the automatic data exchange under the OECD convention). EU Member States start the automatic exchange of information, if available, regarding the taxable periods from 01.01.2014 onwards.

Automatic Exchange of Information - AEOI
Automatic Exchange of Information - AEOI is the exchange of information between countries without having to request it. AEOI exists to reduce global tax evasion. DAC2 defines the Automatic Exchange Of Information - AEOI between EU Member States. Information for the Automatic Exchange Of Information - AEOI between non EU Member States and between EU Member States and non EU Member States as well as the relevant legislation and practitioner guides can be found at OECD Web Site.
Second Edition, March 27, 2017

Common Reporting Standard - CRS
Common Reporting Standard - CRS is the agreed global standard for Automatic Exchange Of Information - AEOI, approved by the Organization for Economic Co-operation and Development - OECD in February 2014. The majority of EU member states and a number of non-EU member states, except U.S.A., have adopted and signed up to CRS. CRS has been developed by OECD which has published the Standard for Automatic Exchange of Financial Account Information in Tax Matters that contains guidance on the implementation of CRS and the CRS XML Schema User Guide.

DAC2/CRS Reporting Application in Relation with Prime® Compliance Suite

Prime® Compliance Suite makes Due Diligence Easier. While DAC2/CRS is primarily a tax law, it intersects with Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. Your institution’s Know Your Customer (KYC) and Customer Identification Programs (CIP) may comply with the identification and verification-of-customers portion of DAC2/CRS.

The common theme of due diligence data collection in regulatory rulings makes Prime® Compliance Suite the perfect tool to help you meet current and future requirements.

Prime® Compliance Suite enables you to:

  • Manage and monitor your KYC/CIP data

  • Store documentation

  • Facilitate required electronic searches through our searchable database

  • Create customer acceptance items and set up ongoing review periods

  • Avoid potential penalties and negative press by remaining in compliance

DAC2/CRS Reporting Application on Prime® Compliance Suite
CubeIQ’s DAC2/CRS reporting module is an add-on to PCS™ EDD Reporter™ module and it is a full web based application with multiple functions such as:

  • Search (Menu Search/Search Customers): In the search page operator selects the types of customers to be included in DAC2/CRS report. The operator can select from the available options which are:  (a) Individuals, (b) Beneficiaries (Business), (c) All and then click the submit button. The application executes the search and then redirects to the results page.

  • Results (Menu Search/Search Results): In results page, the database search output is presented in a list. Each list entry is accompanied by a selection box. Operators can select which of the list entries will be included in the DAC2/CRS report. From the available options which are: (a) One list entry, (b) Multiple list entries, (c) All entries and then clicks the submit button. The application executes the selection and then redirects to the report page.

  • Report (Menu Reports/Report Customers): In report page the operator can view the selected entries to be reported and generate the DAC2/CRS report for previously selected customers. When the operator clicks the submit button the application generates the DAC report which is a set of XML type files based on OECD's CRS specification.

  • Report History (Menu Reports/Report History): In report page the operator can view the generated DAC2/CRS reports with details on each report.

CubeIQ's DAC2/CRS Reporting Application

CubeIQ’s DAC2/CRS reporting application is available as add-on module on Prime Compliance Suite – PCS™ version 9.1.0 and will be available with newer PCS™ versions. However it will not be available with any version prior to 9.1.0.

DAC2/CRS 2017

CubeIQ's DAC2/CRS Reporting module is developed based primary on EU Member States National Competed Authorities XML Schema Implementation User Guides document which is the extraction of the following OECD specification documents:

March, 2017.
Common Reporting Standard - CRS User Guide, Version 2.0, CRS XML Schema v. 1.0
September 2017 Edition.

CubeIQ's DAC2/CRS Reporting Application In Cooperation With Other Systems

CubeIQ's DAC2/CRS Reporting Application is an autonomous web based data management and reporting application capable to retrieve data from different sources such as Prime Compliance Suite - PCS™ database, customer flat data files and any other banking or financial software application database managing customer data, provided that the required data structure – table/fields are disclosure and read access is granted.

CubeIQ's DAC2/CRS reporting features:
  1. Autonomous web based software application with its own database schema.
  2. Multiple users support. Uses can reside in different departments within the financial institution.
  3. Connection to different sources such as  Prime Compliance Suite - PCS™ database, flat files and any other software applications’ database provided that the required data structure – table/fields are disclosure and read access is granted for extraction of customers with specific citizenship status (AEOI Status).
  4. Powerful search facility on the participating jurisdictions citizens’ dataset. User can search using the majority of personal data field (First Name, Family Name, Address, ID Type and ID Number and other) and customer ID. Additional search fields can be added as long as they are included in the database.
  5. Capability to review the data of the extracted customers with specific citizenship status (AEOI Status).
  6. Users can choose to generate AEOI reports for all AEOI participating jurisdictions or for one AEOI participating jurisdiction or for a group of AEOI participating jurisdictions.
  7. Also users can choose to generate AEOI reports for all extracted customers or for one of the extracted customer or a group of the extracted customers from a specific participating jurisdiction.
  8. Modern and intuitive user interface which guides the users how to use the system with a “Wizard” based mechanism.
  9. “What if” Operation: Users can operate the system up to the point to finalize AEOI reports. If the users do not finalize – generate the reports all generated data are deleted.
  10. Audit: AEOI reports that a generated are stored in two ways: (a) the actual XML files are stored in a system’s directory tagged with the creation date and (b) the data of the reports in a system’s database table tagged also with the creation date. This is a very powerful audit trail feature.
  11. A number of other features that enhance security, auditability and ease of use.

For more information about DAC2/CRS Reporting Module or Prime® Compliance Suite and how it covers DAC2/CRS compliance requirement .

AML On-Line by CubeIQ Ltd. :: www.cubeiq.gr

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