Recent developments in AEOI and implications for non-traditional financial institutions

April 2025

The Hong Kong Inland Revenue Department (IRD) has intensified Automatic Exchange of Financial Account Information (AEOI) compliance checks, issuing enquiry letters to non-traditional financial institutions (FIs), such as trust or company service provider (TCSP) licensees and private investment companies, and registered FIs with nil reports.

Failure to comply with the enquiry letters may result in fines and penalties. Entities should assess their AEOI obligations (including exemptions), maintain a robust compliance framework, and promptly address the IRD’s requests to ensure regulatory compliance.

This news flash provides a summary of the recent developments and their implications. For a detailed discussion, please contact our CRS/FATCA team based in Hong Kong.