Bank secrecy to end internationally in 2018: Sri Mulyani
The Jakarta Post
After issuing regulation in lieu of law (Perppu) No. 1/2017 on financial information access for tax purposes, the government is set to commit to the Automatic Exchange of Information (AEOI) in 2018.
Finance Minister Sri Mulyani said 100 countries, including G20 members had committed to AEOI; 50 of which will be ready to implement AEOI in September, while the rest will do so in September the following year.
"This means that internationally, bank secrecy has ended with regard to tax purposes. Every bank customer must now understand that their financial data in financial institutions may be accessed by tax authorities," she said on Friday.
(Read also: Government issues regulation to end bank secrecy)
Hong Kong, Singapore, Switzerland, Australia, British Virgin Islands and Bahama, long considered tax havens, are among those that joined the AEOI.
"This is an international regulation. [Any bank account] above US$250,000 will be subject to information access," she said as reported by Antara on Friday.
Under AEOI, every country committed to AEOI is required to have a law on financial information access and to report standards as well as information exchange transmission system.
"If a country is unable to meet the AEOI requirements, it will be declared to have failed in complying with the rules, and as a consequence will have no power to get information from its partners or has no right to reciprocal information," she said. (bbn)
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