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Automatic exchange of financial information

The Organisation for Economic Co-Operation and Development, OECD, an organisation which promotes policies which will improve the economic and social welfare of people around the world which has published, on the 21 July 14, a publication outlining the standards agreed for the automatic exchange of financial information in tax matters between key tax authorities worldwide.

The G20 leaders met in September 2013 and endorsed the OECD proposal for a global model for automatic exchange of information to fight tax evasion and ensure tax compliance.

The standard was approved by the OECD council on the 15 July 14. The standard calls on jurisdictions to automatically exchange information between their fiscal authorities on an annual basis and outlines common due diligence processes which will need to be followed by financial institutions.

It is a big move towards automatic exchange of information in a multinational context and a tool in the global fight against tax evasion.