Rating: Non-Compliant
Montserrat’s implementation of the AEOI Standard is non-compliant with respect to exchanging the information effectively in practice and in a timely manner. Fundamental issues were identified, as Montserrat has still not undertaken the exchanges that should have taken place in 2021 (SR 2.6). Notwithstanding that, Monserrat appears on track with the other requirements as it linked to the Common Transmission System and commenced exchanges, including sorting, preparing and validating the information as required (SRs 2.4, 2.5 and 2.7) and appears ready to send corrections, amendments and additions if needed (SR 2.9). The requirements in relation to the receipt of the information (SR 2.8) have not been assessed as Montserrat exchanges information non-reciprocally, so does not receive information.
SR 2.4 Jurisdictions should sort, prepare and validate the information in accordance with the CRS XML Schema and the associated requirements in the CRS XML Schema User Guide and the File Error and Correction-related validations in the Status Message User Guide (i.e. the 50000 and 80000 range).
Findings:
While the exchanges due in 2021 are yet to take place, for the previous exchange cycle, Montserrat’s exchange partners reported rejecting only a low number of files received when compared to other jurisdictions. More specifically, in the previous exchange cycle, one of Montserrat’s exchange partners reported rejecting more than 50% of the files received, due to the technical requirements not being met and the issues appear to have been successfully addressed.
Based on these findings it was concluded that Montserrat is fully meeting expectations in relation to sorting, preparing and validating the information. Montserrat is encouraged to continue its implementation process accordingly, to ensure its ongoing effectiveness.
Recommendations:
No recommendations made.
SR 2.5 Jurisdictions should agree and use, with each exchange partner, transmission methods that meet appropriate minimum standards to ensure the confidentiality and integrity of the data throughout the transmission, including its encryption to a minimum secure standard.
Findings:
In order to put in place an agreed transmission method that meets appropriate minimum standards in confidentiality, integrity of the data and encryption for use with each of its exchange partners, Montserrat linked to the CTS.
Based on these findings it was concluded that Montserrat is fully meeting expectations in relation to agreeing and using appropriate transmission methods with each of its partners. Montserrat is encouraged to continue to ensure the ongoing effectiveness of its implementation.
Recommendations:
No recommendations made.
SR 2.6 Jurisdictions should carry out all exchanges annually within nine months of the end of the calendar year to which the information relates.
Findings:
While Montserrat exchanged information for reporting periods 2017, 2018 and 2019 in calendar year 2020, it has subsequently faced significant technical issues and has consequently not yet carried out the exchanges that were due to take place in 2021.
Based on these findings it was concluded that Montserrat is not meeting expectations in relation to exchanging the information in a timely manner. More specifically, fundamental issues have been with respect to the timeliness of exchanges. Montserrat should continue its implementation process to ensure its effectiveness, including by addressing the recommendation made.
Recommendations:
Montserrat should ensure it sends information to all of its exchange partners in a timely manner.
SR 2.7 Jurisdictions should send the information in accordance with the agreed transmission methods and encryption standards.
Findings:
Feedback from Montserrat’s exchange partners did not raise any concerns with respect to Montserrat’s use of the agreed transmission methods and therefore with Montserrat’s implementation of this requirement.
Based on these findings it was concluded that Montserrat is fully meeting expectations in relation to sending the information in accordance with the agreed transmission methods and encryption standards. Montserrat is encouraged to continue to ensure the ongoing effectiveness of its implementation.
Recommendations:
No recommendations made.
SR 2.8 Jurisdictions should have the systems in place to receive information and, once it has been received, should send a status message to the sending jurisdictions in accordance with the CRS Status Message XML Schema and the related User Guide.
It should be noted that, as Montserrat exchanges information on a non-reciprocal basis and does not therefore receive information, it is not required to have in place systems to receive the information and provide status messages. SR 2.8 has therefore not been assessed in this case.
Findings:
Not applicable.
Recommendations:
Not applicable.
SR 2.9 Jurisdictions should respond to a notification from an exchange partner as referred to in Section 4 of the Model CAA (which may include Status Messages) in accordance with the timelines set out in the Commentary to Section 4 of the Model CAA. In all other cases, jurisdictions should send corrected, amended or additional information received from a Reporting Financial Institution as soon as possible after it has been received.
Findings:
While it is unclear whether Montserrat’s approach will ensure that corrected, amended or additional information is provided in a timely manner, it has not been tested and no such concerns were raised by Montserrat’s exchange partners in previous years and therefore with respect to Montserrat’s implementation of these requirements.
Based on these findings it was concluded that Montserrat appears to be meeting expectations in relation to responding to notifications from exchange partners and the sending of corrected, amended or additional information. Montserrat is encouraged to continue to ensure the ongoing effectiveness of its implementation.
Recommendations:
No recommendations made.