The forum’s tenth meeting in Yaoundé, Cameroon saw 200 delegates from more than 90 delegations agree on the principle of annual implementation reports and peer reviews to ensure effective implementation and a level playing field.

So far almost 50 countries have started exchanges of information under the new standard on the automatic exchange of information (AEOI) with another 53 countries starting in September 2018.

The forum has published peer reviews of Curaçao, Denmark, India, Isle of Man, Italy and Jersey, which means there have now been a total of 16 second round reviews of the forum’s 147 member countries and jurisdictions.

The second round peer review highlighted ‘the important progress made by Jersey in the implementation of the international standard, leading to the upgrade of its overall rating from largely compliant to compliant’.

The report stated: ‘Notably, Jersey took the necessary actions to fix deficiencies identified in its 2014 peer review report regarding effective use of information gathering powers, protection of confidentiality and ensuring that requests for clarification do not create unduly delays to the exchange process.’

Jersey processed 262 requests over the period July 2013 to June 2016, which represented almost the double of the requests received during its previous review period, and was able to respond to almost all of these requests in a timely manner.

The review found that Jersey has dedicated appropriated resources to its exchange of information program and is viewed as a cooperative and efficient partner by its peers.

In the case of the Isle of Man, the review found it continues to be compliant with the international AEOI standard. The Isle of Man’s legal framework for the availability of ownership, accounting, and banking information is in place and legal obligations are subject to proper oversight.

The review found the Isle of Man has successfully exchanged both legal and beneficial ownership information in practice. The Isle of Man also addressed a weakness identified in its practice during the last round of reviews, namely the sharing information received under an EOI request with the financial intelligence authority. In terms of exchange of information, the Isle of Man has been commended by peers for its highly efficient and cooperative EOIR practice.

Italy was also found to be compliant, an upgrade from the previous overall rating of largely compliant as Italy has taken measures to speed up ratification process of its EOI treaties and has maintained an excellent record in terms of ensuring the availability, access and exchange of different types of information.

The review said Italy is heavily involved in exchange of information practice, as demonstrated in the large volume of incoming and outgoing information during the reviewed period. Italy's exchange of information practice generally provides for effective exchange of information, even though Italy is recommended to monitor measures recently introduced to further streamline its exchange of information processes so that all requests are responded in a timely manner.

In contrast, Curaçao received an overall rating of partially compliant, with the review finding serious deficiencies in respect of availability of ownership information, access to information and EOI practice.

The review stated: ‘Curaçao’s EOI practice worsened during the period, with EOI requests from its EOI partners not being responded to in a timely manner, but it improved at the end of the review period. Curaçao must also improve the oversight and enforcement mechanisms that are currently insufficient to ensure the availability of ownership and accounting information in all cases.

‘Finally, the Curaçao authorities must ensure that in practice they can get access to information effectively and in a timely manner in all cases, including on information pertaining to international offshore companies.’

Denmark was judged largely compliant, but the review found newly enacted legal provisions in Danish law relating to beneficial ownership were not fully in line with the standard. Additionally, oversight of registration and record-keeping requirements related to the availability of ownership information as well as supervision of banks with respect to the availability of beneficial ownership information was not sufficiently rigorous.

India was also found to be largely compliant, but the review noted some improvements are required to ensure that the new obligations to maintain beneficial ownership information on all the entities and legal arrangements are well monitored in practice.

India sends large volume of EOI requests in its policy to crackdown on tax evasion by Indian residents, and the review said it must continue its work on improving the quality of the EOI requests that it sends to its partners.

Details of the second round peer review reports are here.

Report by Pat Sweet