The global focus on tax transparency is intensifying, and Costa Rica is no exception. With the introduction of Resolution MH-DGT-RES-0019-2024, the Costa Rican Tax Administration is stepping up its supervision, verification, and monitoring of financial institutions’ compliance with the Common Reporting Standard (CRS).
For financial institutions operating in Costa Rica, this means heightened scrutiny on CRS reporting accuracy and timely submissions. But are you prepared?
Let’s take a look at the key warning signs that could put your institution at risk—and how you can stay ahead of the game.
- Are You in the Top 20% of Reporters?
Risk: High-volume reporters are priority targets for oversight.
Solution: Ensure accurate, up-to-date reporting to avoid errors that could lead to audits.
- Inconsistencies in Reporting?
Risk: Data flagged by other jurisdictions will draw attention from Costa Rican authorities.
Solution: Use a CRS validation tool to check data across jurisdictions and ensure consistency.
- Missed Deadlines = Increased Risk
Risk: Late submissions or missed deadlines raise red flags.
Solution: Automate reporting processes with reminders and timely submissions.
- Is Your Data Complete and Accurate?
Risk: Incomplete or inaccurate data can lead to compliance issues.
Solution: Validate all submissions to ensure 100% accuracy and avoid manual errors.
- Are Your Internal Controls Strong Enough?
Risk: Weak internal processes can lead to compliance failures.
Solution: Strengthen internal controls by automating compliance checks and implementing clear procedures.
- Are You Keeping Records for 5 Years?
Risk: Failing to maintain records for five years could trigger penalties.
Solution: Use an automated system to securely store and manage records for the required retention period.
As Costa Rica intensifies its enforcement of CRS compliance with Resolution MH-DGT-RES-0019-2024, financial institutions must be vigilant about their reporting processes. High-volume reporters, inconsistent data, missed deadlines, and weak internal controls can all put your institution at risk of audits or penalties.
By implementing automated tools for data validation, timely submissions, and secure record-keeping, you can not only meet compliance standards but also reduce the risk of costly oversights. The time to act is now—ensure your institution is fully prepared to navigate these new regulatory requirements and maintain smooth, compliant operations.