INTERNATIONAL COMMON REPORTING STANDARDS

The Common Reporting Standard (CRS), developed in response to the G20 request and approved by the OECD Council on July 15, 2014, calls on jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis. It sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions.

The scope and breadth of CRS is significant. For purposes of Puerto Rico, however, it is a non-event, as the United States has not elected to participate in CRS, and Puerto Rico as a US Territory accordingly is not part of CRS or any CRS reporting. This again provides significant cost and operation efficiencies and savings for a Puerto Rico international insurer.

J.A. Walker & Associates is strategically located in Puerto Rico to provide international insurance, legal and financial consulting services to international insurers, financial groups, and family offices. The International Insurance Center of Puerto Rico

Puerto Rico provides a unique international insurance domicile with many compelling advantages. Under the US flag, Puerto Rico’s free market economy is subject to both federal and state regulations designed to protect free market competition specifically within, but not limited to, the insurance and banking industries. Along with the use of US currency, the dollar, and general allowance of free flow of funds abroad, this regulatory structure guarantees sound credit and investment practices. Legal protection is provided under both federal and state constitutions, with legal redress available in federal or State courts. For more information visit The Office of the Commissioner of Insurance of Puerto Rico (OCI) at http://ocs.gobierno.pr/enocspr/index.php/aseguradores-internacionales.

Puerto Rico provides attractive incentives and resources for international businesses and individuals moving to Puerto Rico. For information from The Department of Economic Development & Commerce, please see www.ddec.pr.gov/en/invest. Of specific note are Act 20 that provides incentives for businesses that export services from Puerto Rico, and Act 22 that offers tax exemptions to certain individuals who become new residents of Puerto Rico and apply for the exemption.