What is the exception for reporting thresholds in the CRS compared to FATCA?

The correct choice highlights a key distinction between the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA). Under CRS, there are indeed no specific reporting thresholds for financial institutions, meaning that once an account is determined to be reportable, all accounts held by a reportable person must be reported regardless of their balance or value. This contrasts with FATCA, which has specific reporting thresholds that determine when U.S. financial institutions must report on foreign accounts held by U.S. taxpayers.

The absence of thresholds in the CRS framework means that the compliance burden for financial institutions is relatively consistent, as they must report all accounts once they are identified, whereas, under FATCA, institutions can refrain from reporting accounts below the set thresholds.

This distinction plays a significant role in how financial institutions manage their compliance processes under each regulation, significantly impacting reporting protocols and risk assessment strategies.