Page 598 - AI for Good Innovate for Impact

AI for Good Innovate for Impact

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Item Details
Model Train- Model training is not applicable. The current system is rule-based and does not
ing and involve model training or fine-tuning. Future enhancements may explore the
Fine-Tuning integration of AI for predictive risk analysis or anomaly detection.
However, as part of the UAE Ministry of Finance’s broader digital transformation
efforts, the official MoF website now includes an AI-powered conversational
assistant to support users with inquiries related to the FATCA/CRS system. This
feature, developed under the Zero Bureaucracy initiative, provides real-time
guidance and improves user experience, aligning with the UAE’s vision for smart
government services.

Testbeds or The FATCA/CRS platform is a fully deployed national solution in the UAE. It is
Pilot Deploy- used by over 1,400 Reporting Financial Institutions and supports the secure
ments exchange of tax data with 80+ jurisdictions. The system is integrated with inter-
national transmission platforms, including IDES (for FATCA/IRS) and CTS (for
CRS/OECD), and is actively used for annual reporting cycles.

2 Use Case Description

2�1 Description

The lack of transparency in cross-border financial activities poses significant challenges to
tax compliance, revenue collection, and international fiscal cooperation. To address these
concerns, global frameworks such as the U.S. Foreign Account Tax Compliance Act (FATCA)
and the OECD’s Common Reporting Standard (CRS) were introduced to enable the automatic
exchange of financial information between jurisdictions [1].

The UAE has demonstrated a strong commitment to these standards. FATCA has been in
effect in the UAE since 1 July 2014, requiring financial institutions to report information about
U.S. account holders to the U.S. IRS. Similarly, the UAE adopted the CRS on 1 January 2017,
obligating it to collect and exchange data on tax residents of partner jurisdictions through the
OECD network [1].

In response, the UAE implemented a digital FATCA/CRS reporting system that enables financial
institutions to register, submit data, undergo risk assessment, and comply with reporting
obligations. The system also incorporates secure data exchange mechanisms with partner
jurisdictions via IRS's IDES and OECD's CTS platforms.

Recognizing the evolving nature of global standards, the UAE has also implemented robust
audit and assessment programs to ensure continued alignment and high-quality data reporting.
These efforts have positioned the UAE as a proactive player in international tax cooperation
and transparency.

The system is designed to be adaptive and scalable, supporting future enhancements such
as the implementation of CRS 2.0 requirements. Additionally, the same infrastructure is being
leveraged to support the CARF (Crypto-Asset Reporting Framework), promoting a unified and
efficient approach to regulatory compliance in the financial sector.

Integration with Key Technologies and APIs

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