UAE entities registered under DIFC should consider getting evaluated by applying the FATCA CRS regulations to determine their obligations and to ensure that the appropriate processes and procedures are implemented in order to meet the compliance. All relevant DIFC entities are required to report annually, via the DIFC Client Portal with regards to both CRS and FATCA. The DIFC Client Portal is available from 1 June 2020 to 31 July 2020 for DIFC CRS and FATCA reporting for the reporting period ending by 31 December 2019.
It must be noted that non-compliance with the DIFC FATCA CRS regulations may lead to serious penal consequences. Examples of non-compliance are failure to maintain appropriate documentation with respect to the financial accounts in order to determine reportable accounts, failure to report information with respect to reportable accounts, or inaccurate reporting of reportable accounts, etc. The penalties, as provided under the DIFC CRS regulations may range from USD 2,800 up to USD 70,000 depending on the type of contravention.
However, in order to avoid such risks, it is recommended that the reporting obligations be evaluated and necessary steps are taken to ensure that an entity is compliant with the DIFC FATCA CRS regulations.