Starting January 1, 2026, the international financial system will enter a new level of transparency.

➡️ CRS 2.0 - the updated standard for automatic exchange of financial data - is changing the rules of the game for banks, financial institutions, and all participants in the global economy.

The traditional concept of “banking secrecy” is gradually losing its practical significance, and information about assets is becoming much more accessible to tax authorities across different countries. 🌎📌

Key changes::

1. Expanded reporting scope
Under the updated CRS 2.0 standard, the scope of reporting is significantly broadened. The exchange now covers not only traditional bank accounts but also e-money and digital financial products. New types of accounts and payment solutions, which previously could have remained outside the attention of tax authorities, are now included. Data will be transmitted automatically in a standardized format.

2️. More Detailed Information on Account Holders and Beneficiaries
The new version of the standard requires deeper and broader disclosure of client information. Financial institutions must provide detailed data on tax residency, control rights, and beneficial owners. This includes account balances and transactions, as well as, in certain cases, the sources of funds.

3️. Stronger Global Tax Transparency
Data on all financial assets, regardless of their form, will become accessible to tax authorities across jurisdictions. Differences in regulations and technological gaps will no longer allow assets to be hidden, making financial oversight more systematic and predictable.

CRS 2.0 becomes a key element of international tax transparency. For businesses and financial institutions, this means:
▫️ stricter oversight,
▫️ accurate reporting
▫️ increased accountability.

✍🏻 Olena Davidoglo - Junior Consulting Department Manager

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