Liechtenstein is implementing Common Reporting Standard (CRS) requirements for due diligence law, necessitating the planned introduction of international standards on the automatic exchange of information in tax matters.
Liechtenstein is planning the first exchange of data in 2017. As the government explains in a news release, the due diligence law will serve as a basis to avoid complex parallel processes. The now-approved revisions to the Due Diligence Ordinance (SPV) should enable consistency and were drawn up with the involvement of all relevant authorities and associations, in particular the Liechtenstein Bankers Association and the Liechtenstein Institute of Professional Trustees and Fiduciaries.
The SPV revisions are taking place in two stages and will come into effect on either 31 December 2015 or 1 January 2016. In the first phase ambiguities in the interpretation of the current due diligence law in Liechtenstein are to be removed and should apply to all existing business relations applications. The CRS differentiates between existing business relations and those formed after 1 January 2016. Effective that date, new and partially expanded due diligence will apply. The adoption of this regulation includes a new definition of beneficial owners, corresponding to the new 4th EU directive and the 2012 standards of the Financial Action Task Force (FATF).