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Common reporting standard (CRS)
CRS is an international standard aimed at facilitating the automatic exchange of information about financial accounts. CRS has been devised by the Organisation for Economic Cooperation and Development (OECD) and over 80 countries have endorsed a multilateral agreement to implement CRS in national legislation, including Sweden and all other EU countries.
Under the agreement, the banks must identify their account holders’ tax residency, and each year send statements of earnings and deductions about accounts held by customers who are tax subjects of another country or another jurisdiction. The purpose of CRS is to counteract tax evasion, and the standard is based on FATCA (US tax law).
Although not all countries globally are participating in the CRS cooperation, the banks must identify the tax residency of all account holders, whether or not it is a participating country.