The Insurance Regulatory Unit has issued a circular mandating compliance with the requirements of the information exchange system under the FATCA Agreement and the Common Reporting Standard.
The directive obliges entities to register and submit reports by the Ministry of Finance portal, while ensuring verification of participating countries under the CRS framework.
The circular, aimed at strengthening tax transparency and compliance in line with local and international regulations, sets the reporting window from April 12 to May 31, 2026. It underscores strict adherence to deadlines to avoid penalties or violations, reports Al-Rai daily.
The unit stressed that companies must update or complete their registration data if no prior account exists on the electronic portal, making this a fundamental requirement for submitting reports.
It also mandated the use of the approved XML format, in accordance with standards set by the Organization for Economic Co-operation and Development, whether submissions are made electronically or manually, with full compliance to technical validation rules to ensure accuracy and data integrity.
Entities are required to use updated versions of data schemas for both FATCA and CRS, ensuring that all uploaded information aligns with international standards. The circular also called for the submission of corrective reports in case errors are identified after filing.
Additionally, institutions without reportable accounts are obligated to submit a “Nil Report,” confirming compliance even in the absence of reportable data.
The circular outlined technical requirements, including the use of secure channels for file uploads and limiting file sizes to no more than 50MB. It also specified naming conventions for files to ensure smooth processing and prevent rejection.
Regarding unverified accounts, companies must provide official memoranda explaining reasons for non-verification and attach them to submitted files in line with CRS requirements. Non-compliance may result in legal action, including referral to competent authorities under Law No. 125 of 2019 and its amendments.
In a separate move, the unit issued another circular adopting electronic notification as an official method of correspondence with entities under its supervision, aiming to streamline procedures and enhance communication efficiency.
It clarified that registered email addresses will serve as the official channel for notifications, with all legal effects considered valid upon receipt through the electronic system.
Notifications of violations, as well as summons for investigation, will be deemed legally effective from the time they are sent to the approved email address.
