Background and Principles

Abstract

This chapter establishes the main principles of GATCA combining FATCA, AEoI, CRS and BEPS. While FATCA has primary legislation and direct prosecutorial powers via the HIRE Act, AEoI is a voluntary framework that relies on domestic legislation. The chapter clarifies the concept of reportability being the basis of detection and flowing from KYC, AML, BEPS actions and enhanced due diligence. To reduce operational burdens, exceptions and exemption, both to due diligence rules and scope of reportability are described. Many evasion schemes for individuals operate through collective investment and/or corporate nested structures and the additional burdens this creates are also detailed.