The Common Reporting Standard (CRS) is the framework developed by the OECD that functions similarly to FATCA, and it was developed in response to a G20 request. Approved by the OECD Council on 15 July 2014, it mandates that jurisdictions collect financial information from their financial institutions and automatically exchange this information with other jurisdictions on an annual basis. The CRS outlines what financial account information must be shared, which financial institutions are required to report, the types of accounts and taxpayers subject to reporting, and the due diligence procedures that financial institutions must follow.

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The CRS framework consists of four key components: a model Competent Authority Agreement (CAA), which establishes the international legal framework for the automatic exchange of information; the Common Reporting Standard itself, which details the specific obligations for financial institutions; the Commentaries on the CAA and CRS, which provide interpretative guidance; and the CRS XML Schema User Guide, which specifies how the information should be reported electronically.

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To comply with both FATCA and CRS, banks and other financial institutions need to collect basic information from companies and individuals to ensure accurate tax reporting to the relevant authorities.

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