FATCA stands for the Foreign Account Tax Compliance Act and was enacted on 18 March 2010.It is an effort to curb tax abuse by certain US taxpayers with offshore investments and/or bank accounts. FATCA introduced new regulatory compliance and reporting regimes aimed at identifying and reporting US taxpayers with offshore accounts and/or investments.
On an annual basis, Banks and other financial organisations will be required to report information on financial accounts held directly or indirectly by US persons. We will therefore be reviewing our existing client base to confirm FATCA status of our customers and where necessary we may contact our customers for further information and documentation.
FATCA legislation affects both personal and business customers who are classified as ‘US Persons’ for US tax purposes. This includes individuals who are US citizens, US residents, green card holders, and certain other individuals with substantial connections to the United States for tax purposes.
Additionally, certain types of businesses with US owners or substantial US connections may also be affected by FATCA regulations. This includes businesses that are owned or controlled by US persons, as well as businesses with significant operations or financial interests in the United States.
The term ''United States Person'' means:
- A citizen or resident of the United States
- A domestic partnership;
- A domestic corporation;
- Any estate other than a foreign estate;
Any trust if:
i. A court within the United States is able to exercise primary supervision over the administration of the trust, and
ii. One or more United States persons have the authority to control all substantial decisions of the trust
Any other person that is not a foreign person.
For more information regarding FATCA, please visit the IRS website or contact your tax professional.
No. All Banks and other Financial Organisations are affected by FATCA, however their approach to adopting FATCA may differ.
FATCA legislation impacts both personal and business customers who hold an account with FCM Bank. Please refer to the following question.
No. If a customer’s account holds any of the following indicia, FCM Bank Ltd may request further information/documentation to determine whether you are a US person under FATCA.
- US citizenship or US residence;
- US place of birth;
- US address including US PO boxes;
- US telephone number;
- Repeating payment instructions to pay amounts to a US address or an account maintained in the US;
- Current Power of Attorney or signatory authority granted to a person with a US address;
- In Care of or Hold mail address which is the sole address for the account holder.
If you are considered a US Person, you may be asked to supply us with additional information/documentation. You may also wish to visit the IRS website to determine if you need to complete and submit any additional IRS forms.
FCM Bank cannot offer any advice relating to FATCA and we recommend you contact a professional tax advisor to discuss your personal tax situation.
If you are not considered a US person for FATCA purposes, the impact of FATCA will likely be minimal or nonexistent. FATCA primarily targets US taxpayers with foreign financial accounts to combat tax evasion.
As a non-US person, you are generally not subject to FATCA reporting requirements. However, we may still contact you to confirm your status as a non-US person if there is reason to believe you may potentially be classified as a US person for FATCA purposes. This information may need to be updated or clarified throughout the business relationship.