The move relates to the introduction of the common reporting standard (CRS), which will see more than 100 countries exchanging tax information by 2018.
CRS requires countries to exchange information about individual and expat bank accounts, as well as details about interest and any dividend income earned outside their home country.
Speaking to Gulf News, the compliance head of an unnamed local bank said: “We are yet to receive any specific guidelines on data collection related to CRS. But we are fully aware, starting next year, we will have to collect the required data as part of [the] implementation of CRS.”
Tax status
In a letter to its customers dated 8 December, HSBC said: “From the beginning of January 2017, governments will start requiring all banks and other financial institutions to ask customers for information with a view to determining where they are resident for tax purposes.
“[The bank] is committed to protecting the integrity of tax systems and preventing financial crime of all types and will fully comply with these new laws. Therefore, from the beginning of 2017 onwards, we will be contacting some of our customers to collect information related to their tax status.”
On its website, HSBC states that customers worldwide that have already provided information to the United States in accordance with the Foreign Account Tax Compliance Act (Fatca) may still need to provide additional information under CRS.
