CRS and Cyprus bank accounts

[negon]

For the many people that get confused about the CRS ( Common Reporting Standard) and the opening of corporate Cyprus bank account, you want to read here. It has already been posted once before.

CRS recognizes 2 types of companies:

1. Active Companies
2. Passive Companies

An Active Company is the company that meets any one of the following criteria:
(a) Less than 50 percent of the company's gross income for the preceding calendar year or other appropriate reporting period is passive income and less than 50 percent of the assets held by the company during the preceding calendar year or other appropriate reporting period are assets that produce or are held for the production of passive income;

(b) The stock of the NFFE is regularly traded on an established securities market or

(c) Substantially all of the activities of the Company consist of holding (in whole or in part) the outstanding stock of, or providing financing and services to, one or more subsidiaries that engage in trades or businesses other than the business of a Financial Institution

A Passive Company is a company that is not active. Basically it includes companies that have income from investment activities like dividends, interest, rent and royalties.

The beneficial owners of an Active company will not be reported by the bank

The beneficial owners of a Passive company will be reported by the bank.

So, if the company is an active, then no reporting will be made by the banks.

 

[challenge]

I know it should be like that...
but don't trust them blindly

Read the CRS book with all the DETAILED due diligence procedures for every case.

These days a weird address different from the country stated in your passport is enough to raise suspects and report you to the country declared as residence AND also to the country that issued your passport...

 

[challenge]

Have you seen a recent CRS self certification form? they ask you everything.

 

[negon]

Sure they do, but whatever you are looking for in the banking area and as long as we speak real banks you want find anything that is 100% secure. I agree with you that if you are from one of the African countries or South America it can be difficult and maybe the banks will report you. That said so far I trust the banks I have accounts with and didn't got reported at all.

I know from a few other forum members that they also didn't got reported even some of them have transfered in and out large amounts.

But of course everyone need to be careful with any bank now a days. I wouldn't even trust a bank in Babados nor in Sumalia or Tanzania.

 

[challenge]

Much depends from which country you are trying to hide/run away.
Some countries are pretty harsh with offshores. Then there are other that if you're not big enough you're not worth the hassle.
Other are simply slow with these kind of things and will process the data the next fiscal year.
Some would offer a voluntary disclosure before taking action.
Other still don't have the infrastructure ready to process the data in an automated/real time way.
Lots of variables.

Long story short... don't keep huge amounts of money at a single bank.
That money is more secure if invested in real estate, protected by offshore entities. Also, for a bonus, buy where you'll get awarded a passport in a few years just for having a house there.
Or just make some money even if they report, then buy a second passport as soon as possible if the problem is the country that issued your first one. Now you can gently tell them to f*ck off.
Then you'll be 100% free and don't care about CRS anymore.

 

[maxmoney]

Or just make some money even if they report, then buy a second passport as soon as possible if the problem is the country that issued your first one. Now you can gently tell them to f*ck off.
Then you'll be 100% free and don't care about CRS anymore.

ha ha great advise... but I will have to find a second passport cheap. I don't have 10,000 usd to spend Do you guys think it is the same for digital currency accounts like leupay and worldcore?

 

[negon]

Well all banks will sooner or later have to comply to the CRS and if they don't do they will get into troubles. It make sense to use and keep your money on a digital currency account that you hopefully can trust and that is not going out of business anytime soon!