Issue link: https://maltatoday.uberflip.com/i/1378870
7 maltatoday | SUNDAY • 30 MAY 2021 Scholarships to further your studies Applications open between 14 June - 9 July 2021 Info meeting: 25 June 2021 at 17.00hrs Applications open between 15 June – 12 July 2021 Info meeting: 21 June 2021 at 16.00hrs Applications open between 26 May – 11 June 2021 Info meeting: 3 June 2021 at 16.00hrs Applications open between 26 July -13 August 2021 Info meeting: 3 August 2021 at 16.00hrs Scholarships Unit, Ministry for Education Freephone: 153 | Visit www.myscholarship.gov.mt for further information Applications open between 14 June - 9 July 2021 Info meeting: 23 June at 17.30hrs OperaŸonal Programme II - European Structural and Investment Funds 2014-2020 "InvesŸng in human capital to create more opportuniŸes and promote the well-being of society" Project part-financed by the European Social Fund Co-financing rate: 80% European Union; 20% NaŸonal Funds Popular Revolut app collects users' tax information PAUL COCKS THE digital banking alterna- tive Revolut has started re- questing users of its mobile phone app to provide their tax residence details and taxpayer identification numbers, leav- ing clients wondering wheth- er their transactions will be transmitted to the Maltese authorities. The answer is simply, yes. The OECD's CRS (Common Reporting Standard) and the American FATCA (Foreign Account Tax Compliance Act) are the standards of ref- erence which regulate finan- cial institutions. Now Revo- lut is required to obtain s e l f - c e r t i f i - cation from customers on also their res- idencies, and a taxpayer identi- fication number (TIN) with re- spect to each tax residency. The popular Rev- olut app includes a pre-paid debit card from MasterCard or VISA, and pro- vides users with currency exchange, cryptocurrency ex- change and peer- to-peer payments. Since launching its services in Mal- ta in September 2018, over 190,000 have signed up to the service, making Malta the country with the company's biggest market penetration yet. As of February, custom- ers are also able to upgrade to Revolut Bank for secured deposits. Like all other financial in- stitutions, Revolut is now re- quired by law to collect and report information on clients' tax residencies and account balances under the OECD's Standard for Automatic Ex- change of Financial Account Information, an international consensus on automatic ex- change of tax information. One is typically considered a tax resident in countries where they pay taxes or are physically present for at least six months of a year. The TIN in the case of Malta is the I.D. number. But while Revolut's banking licence is issued in Lithuania, where it is headquartered, it is the country's tax authoriyty that is responsible for trans- mitting the tax data collected by Revolut to other national authorities. "CRS and FATCA standards apply to all fintech providers and Revolut has to show it takes its responsibilities as a licensed bank seriously, if it is to avoid attracting undue audit and supervisory atten- tion," a financial analyst told MaltaToday. Recently valued at €5.5 bil- lion, the company will have money-laundering reporting officers in place, as per EU regulations, to comply with banking regulations and to establish itself as a trustworthy alternative to fiat banking institu- tions. It also means a higher lev- el of su- p e r v i s o r y i n t r u s i o n into a previous- ly-seamless ex- perience for so many Revolut users. Because the first time a hefty sum is deposited into a Revolut account – as little as €2,500 – the account is locked while 'un- der review', and inundated with a plethora of re- quests for proof of income, payslips, VAT returns, par- ents' bank statements, and proof of residence. Whether this level of super- vision turns away long-term customers or not, the due dil- igence intrusion will become the norm the more people use fintech services like Revolut. It is the only way such fintech companies have to protect against money laundering and criminal activity financing terrorism. To the man on the street, it will be up to Revolut to make the experience more palatable for its customers. Since launching its services in Malta in September 2018, over 190,000 have signed up to the service, making Malta the country with the company's biggest market penetration yet.