For trustees, the processes and procedures applying to AEOI and FATCA audits vary significantly from those affecting banks and insurance institutions. Although two different systems are involved, a legal entity is often classified according to the same criteria. A divergence between AEOI and FATCA classification should be subject to close scrutiny.
For example, under FATCA a foundation is always to be classified as a financial institution (FFI) if one of its bodies is itself an FFI. The additional AEOI requirement, whereby a body must manage the assets at its own discretion, does not apply under FATCA.
Whereas some financial intermediaries prepare their own forms and checklists, in some cases hardly any documentation concerning self-certification is to be found. However, under Art. 7 para. 13 of the AEOI Act (Liechtenstein Act on the International Automatic Exchange of Information in Tax Matters, AIA-Gesetz), evidence of the reasonableness of selfcertification must always be provided.
For this purpose, companies must obtain up-to-date annual financial statements and evidence of residence for natural persons. In the case of complex structures, relevant organograms and balance sheets of subsidiaries, as well as loan contracts and other contracts are additionally required. We have incorporated this improvement potential at various times into the audits.