Aei Agreement

8: Switzerland implements the AIA with Hong Kong and Singapore on the basis of specific bilateral agreements. The first group of countries (the “first users”) will start exchanging data from 2017. Switzerland, which will start in 2018, is part of the second group. The implementation of the AIA is in principle based on two models: either bilateral national implementation agreements are concluded, or the Multilateral Competent Authority Agreement (MCAA) is applied. It is based on the Convention on Mutual Assistance in Tax Matters, signed by the Council of Europe and the OECD. The MCAA must ensure that its signatories implement the AIA bilaterally (see chart) as well as new account holders, as existing account holders with links to one or more jurisdictions to be reported are subject to the rehabilitation of the IEA. This also applies to existing individual account holders with links to countries that, after that date, enter into an exchange agreement with Switzerland under the IEA. The AEI standard has no direct legal value, but must be transposed into national legislation by any jurisdiction. IEEE`s obligations will come into force when the jurisdiction in which a financial institution is located adopts the IEE through the implementation of a national IEEE law and concludes multilateral or bilateral agreements with other countries in the judicial system for the exchange of IEEEI information. Swiss nationals living in the United States are not subject to the AIA, but to the FATCA (Foreign Account Tax Compliance Act) agreement between Switzerland and the United States. This agreement requires financial institutions in Switzerland to report their account information directly to the U.S. tax authorities, with the agreement of their respective clients. Last year, the Swiss Secretary of State for International Financial Affairs (SIF) began negotiations with the United States for a new FATCA agreement on reciprocal data exchange.

6: The AIA bilateral agreement with the EU applies to all 27 EU Member States and also applies to islands, Azores, French Guiana, Guadeloupe, the Canary Islands, Madeira, Martinique, Mayotte, Reunion and Saint Martin.

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