Automatic Exchange of Information (AEOI) - detecting and deterring tax evasion

Beginning with the Foreign Account Tax Compliance Act (FATCA) in 2014 and additionally the Common Reporting Standard (CRS) in 2016, new international agreements involving a large number of countries have come into force to help tax authorities find and stop tax evasion, especially relating to assets held in countries where the owner is not resident for tax purposes.

These international agreements, when implemented, create a legal obligation requiring all financial institutions, including Barclays, to:

  • Obtain extra information from customers;
  • Identify a possible connection, for tax purposes, with another country / other countries;
  • Establish the tax residence of all account holders; and 
  • Report the financial account information for identified customers to the relevant tax authorities.