Automatic Exchange of Information

Automatic exchange of information (AEOI) refers to an international agreement where countries share financial information about individuals and entities to combat tax evasion. It involves sending data on bank accounts and financial assets automatically, rather than waiting for requests. Countries participate in this process to ensure transparency and to help tax authorities track down those who may be hiding assets abroad. This cooperation aims to promote fairness in tax systems and deter individuals from using offshore accounts to escape their tax obligations.