1. What is CRS?

CRS represents the standard for the automatic exchange of information in tax matters, regarding financial accounts, issued at the initiative of the Organization for Economic Cooperation and Development (OECD) together with G20 countries.

CRS has been implemented in the European Union by Directive 2014/107/EU amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation and has been transposed in the national regulatory framework by Law no. 70/2016 on ratifying the multilateral Agreement of the competent authorities for automatic exchange of information on financial accounts, signed in Berlin on October 29, 2014.

Other legal provisions in force that regulates the financial institutions' obligation to provide the competent tax authority - N.A.F.A. information regarding the resident taxpayers of the states to which Romania is committed based on a legal instrument of international law, also include:

  • Law no. 207/2015 regarding the Fiscal Procedure Code, as amended and supplemented (Chap. I, Title X; Appendix no. 1);
  • Order no. 1939/2016 issued by the Ministry of Public Finance (MPF) regarding financial institutions that have reporting duties, type of information for taxpayers identification, as well as financial information related to their opened and/or closed accounts at the financial institutions, non-reporting Romanian financial institutions and the excluded accounts, the compliance rules applicable to these financial institutions for identifying the reportable accounts and also the reporting procedure of this information, including rules and administrative procedures aiming to ensure implementation and compliance with the reporting procedures and tax diligence rules provided in the international legal instruments of international law to which Romania is committed.

2. Since when is CRS applied?

CRS requirements apply starting with January 1, 2016. Starting with this date, the financial reporting institutions in Romania are required to apply the reporting and tax diligence rules provided in the Fiscal Procedure Code.

3. Which is the purpose of CRS?

CRS was issued in order to prevent tax evasion, through tax avoidance by taxpayers, using opened accounts at foreign financial institutions or investment instruments. By implementing CRS, there were taken into account the transparency of the tax collection procedure and the diminishing of cross-border tax fraud and tax evasion by removing accordingly the unreported and untaxed income. Every country that has joined the CRS will gain a clear picture of the financial assets held by its own citizens abroad.

Under conventions related to the automatic exchange of information concluded between Romania and other states, financial institutions have the obligation to provide to the Romanian tax authorities, annually, financial information relating to accounts opened and/or closed by taxpayers who are residents of the other participating jurisdictions.

According to CRS requirements, Romanian financial institutions (Banca Romaneasca, member of the National Bank of Greece Group - "the Bank" falling into this category) must:

  • identify the clients (individuals or legal persons) who have their fiscal residency in another state/or in more states, other than Romania, among clients with contracts concluded after January 1, 2016, as well as among clients with existing contracts at the same date;
  • report to the competent tax authority, respectively to N.A.F.A., the financial accounts of the clients who have their fiscal residency in another state/or in more states, other than Romania. N.A.F.A. will report the information to the tax authority from the state(s) where the client has the fiscal residency (residencies).

4. To whom are CRS requirements applied?

CRS requirements apply to all clients who have their fiscal residency in another state, other than Romania (individuals or legal entities controlled by citizens who have their fiscal residency in another state, other than Romania) holders of opened and/or closed accounts at the financial institutions in Romania.

5. Terms used in accordance with CRS provisions

  • Automatic exchange: regularly communication of predefined information (set in the regulatory framework mentioned above) related to fiscal residents from other members states to the relevant resident member state, without a prior inquiry, at regular preset time intervals.
  • Reporting jurisdiction: a state (jurisdiction) with whom Romania or the European Union has an agreement in place, under which the respective state is obliged to provide information on financial accounts. The list of the participating jurisdictions is included in Appendix no. 1 of MPF Order no. 1939/2016.
  • Person subject to reporting / "reportable person": a person that presents any of the reporting indicia / any person who is a tax resident in a reporting jurisdiction and held accounts subject to reporting.
  • Account subject to reporting / "reportable account": represents a financial account that is managed by a reporting financial institution in Romania and is owned by one or more reportable persons.
  • TIN: taxpayer identification number assigned by the competent tax authority or its functional equivalent for tax administration purposes.
  • Undocumented client: client that refuses to provide the reporting financial institution all the necessary identification data according to CRS / client for whom indicia have been found, that have not been confirmed or infirmed by him.
  • Self-certification: statement on own responsibility.
  • "Changing of circumstances": any modification that has as a result adding relevant information on the tax status of a person or that, in other way, falls in contradiction with the tax status of the person concerned.

6. What are the indicia that establish the "Reportable person" status?

Indicia represent information provided by clients that may lead to frame as reportable person an individual or a legal person.

For individuals:

  • Citizenship or residency in a reporting jurisdiction, other than Romania;
  • Present correspondence or residence address, including post office box, in a reporting jurisdiction, other than Romania;
  • One or more telephone numbers in a reporting jurisdiction, other than Romania and no telephone number in Romania;
  • Standing instructions (related to financial accounts other than deposit accounts) to transfer funds to an account maintained in a reporting jurisdiction, other than Romania;
  • Currently effective power of attorney or signatory authority, granted to a person with his/her address in a reporting jurisdiction;
  • A "hold mail" instruction or "in-care-of" address in a reporting jurisdiction, other than Romania.

For legal persons:

  • Residency in a reporting jurisdiction, other than Romania (place of registration, incorporation, or any other address in other state - correspondence address);
  • The person/persons identified as real beneficial owner(s) of the legal entity present one of the indicia mentioned above.

7. When is a person considered to be a reportable person, according to CRS?

Identifying, by the Bank, of any of the indicia previously mentioned, will not lead to automatic framing of clients as reportable persons, but clients will be requested specific information or additional supporting documents, based on which the Bank will determine the status of each client. It will thus be necessary to confirm the information, by submitting the following documents by each Client, at the Bank's request:

  • a self-certification, in the form of a statement on own responsibility, in order to verify and confirm (if appropriate) the data and information held by the Bank;
  • documentary evidence in order to support the information provided in the self-certification previously mentioned.

The information and/or documents will be presented to the Bank within the required deadline.

In case of identification data change (changes of circumstances), affecting the person's status from CRS point of view, the Bank must be informed.

Clients that will be framed as being undocumented will also be reported to N.A.F.A.

8. What are the categories of information to be reported to ANAF?

In accordance with Law no. 207/2015 regarding the Fiscal Procedure Code, as amended and supplemented, Banca Romaneasca S.A. collects its clients' personal data as stipulated in art. 291, para. 4 and in MPF Order no. 1939/2016 art. 6, in order to select and transfer them in accordance with art. 62 and Chapter I, Title X of the same Law. The Bank must report to N.A.F.A. the following general information related to each reportable account:

a) in case of an individual that is the account holder and reportable person: name, address, jurisdiction of residence, taxpayer identification number(s) (TIN), as well as the date and place of birth;

b) in case of an entity that is the account holder and reportable person: name, address, jurisdiction of residence and taxpayer identification number(s) (TIN);

c) in case of an entity that is the account holder and that is identified having one or more controlling persons subject to reporting:

1. name, address, jurisdiction of residence and taxpayer identification number(s) (TIN) of the entity; and

2. name, address, jurisdiction(s) of residence and taxpayer identification number(s) (TIN) of the persons and the date and place of birth of each reportable person;

d) the account number;

e) the account balance or the account value as of the end of the calendar year for which the reporting is being done or, in case the account was closed during that year, the last transaction value immediately prior to closing the account;

f) for any custody account: information related to the total gross amount of interest/dividends/other earnings generated from assets held in the account, paid or credited in the respective account or in connection with the respective account during the calendar year, as well as the amount of gross revenue from the sale or redemption of financial assets paid or credited in the account during the year, with respect to which the reporting financial institution acted as custodian, broker, representative or any other mandatary of the account holder;

g) for any deposit account: the total gross amount of interest paid or credited to the account during the calendar year;

h) for other types of accounts: the total gross amount paid or credited to the account holder in relation to the respective account during the calendar year with respect to which the reporting financial institution is a debtor or is obliged to pay, including the aggregate amount of any reimbursements paid to the account holder during the calendar year.

In all cases:

  • the information mentioned above must identify the currency in which each amount is denominated;
  • the information regarding personal data or related to banking secrecy must be reported to N.A.F.A. annually, in the calendar year following the year to which the information relates.

9. How to report?

The reporting to N.A.F.A. will be annually made, by May 15 of each year, with information for the previous fiscal year. The first reporting will be made on May 15, 2017.

In this context, the individuals and the legal persons owning accounts subject to reporting must ensure that they fulfil the tax obligations in their country of residence, since the financial information is now becoming visible to the competent tax authorities.

10. Applying the provisions of Law no. 677/2001 on the protection of individuals with regard to the processing of personal data and the free movement of such data

In context in which the Bank's Client is a resident taxpayer of a state to which Romania is committed based on a legal instrument of international law, the Bank will report to N.A.F.A. the information required under the legal provisions mentioned above and according to the procedure regulated by the Order of MPF no. 1939/2016.

The Clients' personal data - name, address, tax identification number(s), date and place of birth, account number(s) - as defined by Law no. 677/2001 on the protection of individuals with regard to the processing of personal data and the free movement of such data, as amended and supplemented, were obtained at the time of opening the Bank account(s).

In order to achieve the mentioned goals, the Bank will process its Clients' personal data for the entire duration of the Bank's activities, taking into account the legal provisions in force.

Processing of personal data is performed with the purpose of conducting the contractual relationship between the Client, as a user of services and the Bank, as provided by the applicable law.

The Bank's Clients benefit from the rights provided by Law no. 677/2001 on the protection of individuals with regard to the processing of personal data and the free movement of such data, as amended and supplemented, in particular the right of access to data, information, modify the data and opposition right, the right not to be subjected to an individual decision, the right to address to the National Supervisory Authority for Personal Data Processing or justice, rights which may be exercised within legal limits.

To exercise the above rights, as well as any other information relating to the processing of personal data, individuals can submit a written request, dated and signed, to Banca Romaneasca S.A. Member of National Bank of Greece Group, Bucharest, George Constantinescu street no. 3, floors 1, 2 and 3, district 2.