What does “automatic exchange of information” mean?

In a joint declaration, numerous states, including all major
financial centres and thus also Liechtenstein, committed themselves to the introduction of the OECD standard for transparency and exchange of information in tax matters, the so-called “Automatic
Exchange of Information” (AEI). Under the AEI, financial institutions in these countries are required
to provide their national tax authorities with information on their foreign clients
and their financial accounts.