By Chen Yun (Robert)  Wang Rong  King &Wood Mallesons Shanghai,China

陈运The Consultation Paper issued by SAT on 14 October 2016 is essentially the operating rules for the implementation of CRS within PRC mainland territory by converting the international applicable CRS into detailed requirements suitable for PRC national conditions and providing legal basis and operational guideline for such implementation.

In accordance with the Consultation Paper, commercial banks, securities companies, fund management companies, specified insurance companies, trust companies and other entities fall within the definition of “Financial Institution” thereunder located in PRC are required to undertake due diligence obligation in respect of their clients (i.e. account holders) for purpose of identifying non-resident financial accounts and obtaining account information necessary for reporting.  The Consultation Paper has set out the minimum due diligence requirements in detail.

The period for soliciting public comments will elapse on 28 October 2016 and the final regulation is supposed to be promulgated by the end of 2016 and is expected to take effect from 1 January 2017.

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