It is reliable. EMIs are currently not reporting under CRS (or FATCA unless they have signed up individually). In the EU framework there is an exemption for EMIs.
The answer is that they don't - unless you tell them.
If there is a criminal investigation both banks and EMIs will hand out any information they have on you. But, they have to be contacted individually. Depending on the country, yhis might also be true if it is the tax authorities doing an investigation. So, if you have sent money from or to an EMI in your name to and account in your name they will find the EMI if they look at your bank statement.I've had a couple of banks in my country ban me and close all my accounts
I assume as police or tax authority conducted a warrant for my account details
They would then know everyone I sent money to and from
Therefore if I had a emi that had sent to my account then thats how they find
They do not report because they are excempt from reporting. This might change in the future.ok, but ,generally spoken, most EMI’s DONT report accounts ,correct ?
They do not report because they are excempt from reporting. This might change in the future.
But, and this is important, you have to check witch license they operate under. Revolut has a banking license as well, so if they use this license they will have to report.
I have often seen the claim here on Offshore Corp Talk that EMIs do not report under CRS.
And I've seen copies of emails from EMIs pasted into threads here telling their customers that they don't report and CRS.
Transferwise even says on its website that it is "evaluating it's obligations under CRS and FATCA" but for the time being it doesn't report (and I suspect other EMIs are probably just following Transferwise's lead on this).
So while it seems EMIs don't report, I haven't seen an EMI say they are not obliged to report - two very different things.
So I spent some time yesterday trying to find this "EMI exemption" in the CRS standard and supporting documents, in the EU CRS directive and in the UK CRS legislation and while I'm definitely no CRS expert by a long shot, I couldn't find a mention of "Electronic Money Institution" or even "electronic money", let alone a specific exemption for them.
So does anyone know where this exemption is found?
Is a CRS reporting exemption for EMIs explicit in any of the CRS laws? Or is it because EMIs (and the normal banks they use to keep their customers' money like Barclays, JP Morgan Chase and Wells Fargo) do not fall within the relevant CRS definitions?
It would be great if anyone could point us to the specific exemption in the CRS law, or properly explain how CRS laws do not apply to EMIs, e.g. are EMIs and the banks they are not "Reportable Financial Institutions" because they do not provide "Depository Accounts" or "Custodial Account"s?
Or maybe they are Reportable Financial Institutions but EMI accounts are not "Reportable Accounts" because they are not "Depository Accounts" or "Custodial Accounts"? (or they are, but those accounts then fall within the definition of "Excluded Accounts"?).
And does anyone have a specific examples of someone having their EMI account reported under CRS and AEOI?
I'm pretty confident that in practice the EMIs are not reporting people under CRS, otherwise they would have seen a big effect on customer behavior and/or numbers, but it would be nice to have a definitive explanation for why EMIs are not obliged to report to do so.
Yes. The point is that they are not deposit takers.Nevermind - I found it, for UK registered EMIs at least (but I strongly suspect it will be the same interpretations for EMIs registered in other EU jurisdictions).
Here is one PWC paper from 2017 regarding Malta which states exactly the same. https://www.pwc.com/mt/en/publications/tax-legal/assets/crs_fatca_march_2017.pdf
This, and some other issues, prompted the EMA (Electronic Money Association) to send a letter to all EU government. It is very clarifying to read. This one is the one to Luxembourg: https://www.e-ma.org/emaweb/wp-cont...g-Tax-Authorities-regarding-FATCA-and-CRS.pdf But there were similar letters to all EU countries.
I am following your opinions, as I have some EMI's (Rev., Bunq, Monese, N26), and in all of them I have some money, and this issue of CRS really worries me.
I know they only send the deposited amount at the end of each year (in these EMI, I take the money and keep it at home), but if they don't report it, even better!
I think I have also read some scepticism on the forum about CRS and the "end of year balance" reporting too.