Transparency groups have reacted in different ways, and some criticize the fact that developing countries have not been considered and involved.  The collection and provision of information can be so costly and difficult for developing countries that it is not possible to participate in the regime. Instead of offering a period of non-reciprocity during which developing countries could simply obtain financial data, the only mention of non-reciprocal agreements is the reception of tax havens.  The MCAA CRS provides details of the information exchanged and when. It is a multilateral framework agreement. A specific bilateral relationship under the MCAA CRS only comes into force when the two jurisdictions have implemented the convention, submitted the necessary notifications in accordance with Section 7 and presented themselves to each other. The information and its exchange format are subject to a detailed standard, details of which are contained in a 44-page document.  The OECD is examining investment mechanisms around the world to identify compliance risks and gaps. It has opened a website for whistleblowers to report anonymous IRS violations, including for pensions, insurance and citizenship tools for sale. The OECD has classified an investment instrument in Hong Kong as “low risk” and can be used to circumvent IRS, and has called it a “low risk,” which is considered an “unreported financial institution” and can be used to circumvent IRS because it does not require reporting under the SIR guidelines and can be effective as a shell company.  OECD initiatives have made it clear that the international community will not tolerate harmful tax practices in tax havens that deplete countries` tax bases.
This is done naturally when the people of this country invest in tax havens. The hope is that the implementation of the MCAA and the various sanctions and sanctions will lead to the decline of many circumvention measures in practice. On 4 June 2015, 61 countries signed the MCAA, with a number of others committed to the agreement to ensure that the majority of the international community strongly supports the OECD in the fight against tax evasion. The Global Forum has always provided its members with daily assistance to help them effectively implement international standards. Over time, more and more developing countries have joined the Global Forum to benefit from transparency and exchange information for tax purposes, in order to combat offshore tax evasion and increase their revenues. The AIA Implementation Report provides more detail on the implementation of the new Automatic Information Exchange Standard (AIA) on offshore financial accounts. Its content reflects the situation as of November 24, 2019. The implementation of the AIA standard requires legal systems to collect information from their financial institutions (including banks, hedge funds and investment trusts) and to exchange it automatically with jurisdictions in which the account holder is a tax resident (provided the court has the necessary framework to keep the information confidential and properly protected). The AIA standard therefore relies on three key elements: for South Africa to meet its obligations under the multilateral agreement and the McAA, it needs detailed information from the country`s financial institutions on accounts linked to residents of other countries. The OECD allows participating countries to determine which accounts are subject to reporting.
“The term “reporting report” refers to a notifiable [jurisdiction A] account or [Jurisdiction B] to be declared, depending on the context, provided it has been identified as such in accordance with due diligence procedures, in accordance with the Schedule of [Jurisdiction A] or [Jurisdiction] or [B].”  Through these three components, the AIA standard provides a powerful tool to deter and identify offshore tax evasion by holding financial assets abroad.