Source: https://profwilliambyrnes.com/tag/giin/
Timestamp: 2019-08-25 16:08:28
Document Index: 184789389

Matched Legal Cases: ['art 1', 'art 2', '§1471', '§ 7', '§1', '§1', 'art 1', 'art 4', 'art 4', '§ 1', 'art 4', '§ 1', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 1', 'art 4', 'art 1', 'art 4', 'art 4', 'art 1', '§1', '§ 1', '§1', '§ 1', '§ 1', 'art 2', 'art 2', 'art 3', 'art 3', 'art 4', '§ 1', '§ 1', 'art 2', 'art 2', 'art 3', 'art 3', 'arts 1', 'art 4', 'art 1', 'art 2', 'art 2', 'art 2', 'art 2', 'art 4']

GIIN « Wealth & Risk Management Blog
Posts Tagged ‘GIIN’
OFAC compliance v. FATCA compliance? Can a SDN FFI Obtain a GIIN?
Posted by William Byrnes on August 4, 2015
The entity I represent is on the Office of Foreign Asset Control’s Specially Designated Nationals list. Is the entity eligible to register and receive a GIIN?
Answer to be found International Financial Law Prof Blog
Posted in FATCA | Tagged: FATCA, FFI, GIIN, OFAC, SDN | Leave a Comment »
Haydon Perryman & William Byrnes’ June FATCA GIIN Update
Posted by William Byrnes on July 1, 2015
The FFI GIIN List Update (Lists from June 1, 2014 through June 1, 2015)
On 1 June 2015 the IRS published its thirteenth FATCA GIIN list of “approved FFIs” (a list of the financial firms that have registered on the IRS FATCA portal).
Total approved FFIs reached 165,461, and increase of only 2,851 during the month of May. This FATCA registration trend since January has been described as lethargic, with April’s increase just 2,600 additional firms joining, 3,734 additional during March, and 2,479 in February. But when compared to what was forecast by the IRS, by industry, and by the UK, it’s a troubling low figure.
In its FATCA FAQs, the IRS suggested a 500,000 potential FFI registration figure. Many industry stakeholders suggested that 800,000 – 900,000 firms fall under the expansive definition of financial institution.
Given the broad definition of a financial institution that must register for a GIIN, the UK HMRC estimated that, even with its IGA and its accompanying local regulations, 75,000 UK entities probably are impacted. Yet, only the UK GIIN population is only 23,256.
If the UK HMRC is correct that 75,000 entities are impacted in the UK, then extrapolated among other large and sophisticated financial service economies like Japan, China, India, and Germany, the IRS estimate of 500,000 may be low.
90 countries and dependencies have entered into a FATCA IGA with the U.S. based on Model 1A (reciprocal), or are awaiting local ratification, accounting for 100,190 of the registrations. A further eight countries signed a Model 1B (non-reciprocal), accounting for a further 39,564 GIINs. A final 14 countries signed a Model 2 version IGA, adding 18,458 FFI registrations covered by an IGA. Thus in total, 158,212, representing 96% of FFI registrations, are from the 112 IGA states and their dependencies.
The 131 countries and dependencies without an IGA have only registered 6,295 FFIs to date, a surprising low number given that the initial implementation of the 30% withholding for non-compliance with FATCA began 1 July 2014.
The UK and its ten dependencies and overseas territories comprised 74,694 of the GIINs, representing 45% of the total, or without the UK included, 49,898 for 30.6%. The 34 OECD members have produced 79,057 GIIN registrations.
Cayman remains the FFI registration global leader, with 30,868, throughout the entire FATCA registration process. Ironic that the EU Commission just black listed it last week.
The major financial industries of the four BRIC countries have only led to 8,254 FFI registrations, which is seen as a worrying point for FATCA acceptance among non-OECD states. BRIC registrations are now just dripping in, up from 8,186 in May, 8,060 in April and 7,962 in March.
OECD Common Reporting Standard signatories for the a multilateral competent authority agreement to automatically exchange information has reached 61. But a notable holdout of a signatory that has not yet actually ratified the agreement is the U.S. 88 countries and dependencies are signatories to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, the latest being Mauritius which signed June 23.
FATCA IGA Scenarios GIINs Jurisdictions
Model 1A IGA 100,190 90
Model 1B IGA 39,564 8
Model 2 IGA 18,458 14
No IGA 6,295 131
US 886 1
US Territories 68 6
Total 165,461 250
Want to read more GIIN analysis and statistics? See the International Financial Law Professor blog
I am beginning my new faculty position with Texas A&M University School of Law in a week. With the resources of Texas A&M Law, my research colleague Haydon Perryman (who is now with UBS Investment Bank where he is responsible for global regulatory reporting of FATCA and the CRS) and I will be able to expand our FATCA and CRS research capacity. Any readers that want to assist in such research, please contact us at Haydon Perryman or William Byrnes. Please download my FATCA SSRN article here.
Posted in FATCA | Tagged: CRS, FATCA, FFI, GIIN, OECD | Leave a Comment »
FATCA GIIN Registrations Update for April | Kluwer International Tax Blog
Posted by William Byrnes on April 23, 2015
FATCA GIIN Registrations Update for April | Kluwer International Tax Blog.
Posted in FATCA | Tagged: FATCA, GIIN | Leave a Comment »
Haydon and Byrnes’ Analysis of FATCA Updates & GIIN List of March 2015
Posted by William Byrnes on March 20, 2015
GIIN list, IDES Update, 8938 Form Instruction Updates …. read on Wolters Kluwer.
GIIN Lists Analysis: June 2014 through March 2015
In the words of my English colleague Haydon Perryman, March was a “bit of a damp squib”. Financial institution FATCA registrations have slowed to a trickle with only 2,479 additional ones seeking a GIIN, bringing the ultimate total to 156,276.
Of this total, … read on Wolters Kluwer
Form 8938 (Reporting of Specified Foreign Financial Assets) Instructions Updated
In the Final Regulations effective 12 December 2014, Form 8938 Reporting of Specified Foreign Financial Assets, the IRS addressed such issues as dual residents, valuation challenges, foreign currency, virtual currency (left for another time), retirement accounts and insurance policies. The Final Regulations can be found on the FATCA – Regulations and Other Guidance page in the For Individual Taxpayers section. However, as of 10 March 2015, the IRS updated December’s changes to the Form 8938 reporting requirements, as well as including additional information not in the December instructions. A summary of important points follows. Of this total, … read on Wolters Kluwer
Posted in FATCA | Tagged: FATCA, FFI, GIIN | Leave a Comment »
Comparison of NAFTA, BRIC, EU and Caribbean of the 8 FATCA GIIN Lists (June 2014 -> January 2015)
Posted by William Byrnes on January 12, 2015
see the full analysis at International Financial Law Prof Blog excerpted below.
Caribbean and Atlantic Financial Centers Registrations
The Cayman Islands remain the global FATCA compliance registration leader with 27,011 FFIs, almost 7,000 more compliant FFIs than the UK. The June GIIN list included 1,837 BVI FFI registrations, now at 4,653. Bahamas has increased from 610 to 882, Bermuda 1,242 to 1,824 and Panama 450 to 773. …
By the way, the 3rd edition of my Lexis Guide to FATCA Compliance will be out soon with substantial more analysis – 1,200 pages over 54 chapters. Over 50 FATCA compliance experts from tier 1 institutions, former government officials, and professional firms have contributed to create this detailed and robust guide, filled with numerous practical examples and several chapters written specifically for the non-legal, compliance operations officer. No filler pages of publicly available documents and regurgitated regulations – it’s all beef. See the Lexis website to order a copy of this 3rd edition.
Analysis of the 2014 FATCA GIIN Registration Lists
Posted by William Byrnes on December 2, 2014
Haydon Perryman and I have sifted through the GIIN lists of June through December. I present Part 1 initial analysis below. Part 2 on Thursday.
…. The November 2014 list saw a jump in registration, led by the United Kingdom, achieving a total of 116,104 FFIs and branch registrations.[6] 43 percent of all registered GIIN are from the UK and her Crown Dependencies and Overseas Territories. The final GIIN list released before submission for publication, December’s, grew by only six thousand registrations, to 122,881, of which only 6,094 were from non-IGA countries. Such a stunted growth in FFI registration is foreboding of the remaining, significant compliance challenges. …. read the entire story at International Financial Law Prof Blog
Analysis of FATCA GIIN List (of November 1st)
Posted by William Byrnes on November 7, 2014
Hello Lexis FATCA / International Tax Subscribers,
I am just one weekend away from completing the 3rd edition of Lexis’ Guide to FATCA Compliance. Deep into my analysis of these challenging issues, editing, cross-referencing, and amalgamation of over 70 expert contributors analysis and perspectives (including Haydon Perryman). All the FATCA activity this year has spawned 54 chapters of over 1,000 of legal, operational and compliance analysis. I hope that I have been as pedantic as the previous years with catching every typo, cross reference link, footnote citation, and consistent style / grammar / punctuation.
Last month, the GIIN list included 104,344, a jump from the September list of 5,000 from 99,861 FFIs (mind you that a substantial number of these registrations are not unique, but instead represent affiliates within EAGs) – see our previous analysis links below. It is now November. The UK self-imposed (yet ignored) deadline to GIIN register passed October 25th.
So what happened? read on at http://lawprofessors.typepad.com/intfinlaw/2014/11/novembers-published-fatca-giin-list-analysis.html
remember to download for free –> LexisNexis® Guide to FATCA Compliance
IRS Posts New and updated FATCA FAQs
Posted by William Byrnes on August 5, 2014
New and updated FATCA Registration System and FFI List FAQs have been posted to the FATCA Website.
What is the maximum number of points of contact allowed on the Registration? Updated: 8-1-2014
What information will be in the notification e-mail the RO receives? Updated: 8-1-2014
Why is the RO not receiving FATCA notification emails regarding the FI’s status and account updates? Updated: 8-1-2014
free chapter download here —> http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2457671 Number of Pages in PDF File: 58
Over 600 pages of in-depth analysis of the practical compliance aspects of financial service business providing for exchange of information of information about foreign residents with their national competent authority or with the IRS (FATCA).
Posted in FATCA | Tagged: FATCA, FFI, GIIN, IGA | Leave a Comment »
August FATCA GIIN list analysed by country and by IGA
Posted by William Byrnes on August 1, 2014
By William Byrnes and Haydon Perryman
The IRS published its August list of 95,239 FATCA registered FFIs, including entities that completed the registration process by July 25th. The increase has been disappointing to say the least. Only 7,246 additional entities completed registration this past month, up from 87,993 in July.
89,718 FFIs (94%) are registered from the 101 IGA countries on the GIIN list. Only 4,801 FFI (5%) registered from the 143 countries without an IGA for which FATCA withholding began July 1st.
June GIINs 77,354 -> July GIINs 87,993 -> August GIINs 95,239 (7,246 increase)
How Many Foreign Financial Institutions Are Still Not Registered? Most!
Most pundits thought at least 20% of the FFIs requiring FATCA registration would have done so by now. We were wrong. I was personally thinking that 110,000 would be registered for the August 1st FFI list. The small increase of just 7,246 is troubling. Total global compliance remains in the single digits by both the IRS and foreign government estimated numbers.
The 30% FATCA withholding began July 1st on 143 countries (101 have IGAs that forestall withholding until January 1, 2015). Only 4,801 FFI (5%) registered from these 143 countries. Thus, FATCA compliance is running in the low, single digits for these countries.
read our analysis and a country-by-country, and IGA, breakdown at International Financial Law Professor
Haydon Perryman, FATCA Compliance expert of Strevus, and I have been undertaking (and publishing) the leading, same-day, analysis of the previous June 2nd and the July 1st of the FATCA FFI GIIN list by country, by IGA, by EAG, as well as exploring other interesting aspects of registered FFIs, and FATCA compliance documentation (e.g. W-8s and equivalent forms allowed by IGA). Haydon brings the practical side to bear having established the FATCA compliance system for Tier 1 UK institutions and Tier 1 EU ones, and I the academic side being the primary author of Lexis’ Guide to FATCA Compliance and an international tax professor.
Posted in FATCA | Tagged: FATCA, FFI, GIIN, IGA | 2 Comments »
FATCA FAQs Updated by IRS
Posted by William Byrnes on July 23, 2014
FATCA Q&A Updated by IRS – the updates are below. Link to New and Updated FAQs have been Posted with Regard to QI Agreements, Financial Institutions, and General Compliance
Posted in FATCA | Tagged: FATCA, GIIN, IGA, W-8BEN-E | Leave a Comment »
Updated 2014 Qualified Intermediary (QI) Agreement released !
Posted by William Byrnes on June 27, 2014
Revenue Procedure 2014-39: Application Procedures and Overview of Requirements for Qualified Intermediary Status Under Chapters 3, 4, and 61 and Section 3406; Final Qualified Intermediary Agreement. The effective date of this revenue procedure is June 27, 2014. Revenue Procedure 2014-39 will be published in IRB 2014-29, dated July 14, 2014.
The QI agreement is updated to reflect the enactment of Chapter 4 (§§1471-1474) of the Code, and the issuance of regulations under section 3406 and chapters 3, 4, and 61 of the Code.
Renewal of QI: An FFI that seeks to renew its QI agreement as well as register as a (a) participating FFI, (b) registered deemed-compliant FFI, or (c) limited FFI must do so by submitting a registration form through the FATCA registration website.
An NFFE that is a direct reporting NFFE or a sponsoring entity of a direct reporting NFFE must also renew its QI agreement through the FATCA registration website.
A QI will retain its QI-EIN to be used when it is fulfilling the requirements of a QI under chapters 3, 4, and 61 and section 3406, including making tax deposits and filing Forms 945, 1042, 1042-S, 1099, and 8966.
New QI: A prospective QI must submit Form 14345, Qualified Intermediary Application, to become a QI. The Form 14345 must establish, to the satisfaction of the IRS, that the applicant has adequate resources and Procedures to comply with the terms of the QI agreement.
Once the QI application is approved, the IRS will send an approval notice to the address of the QI provided on Form 14345. The approval notice will include a QI-EIN for fulfilling the requirements of a QI under chapters 3, 4, and 61, and section 3406, including making tax deposits and filing Forms 945, 1042, 1042-S, 1099, and 8966.
It will also instruct a QI (other than an NFFE that is not acting on behalf of its shareholders) to submit the information specified in Form 8957, Foreign Act Tax Compliance Act (FATCA) Registration, (“registration form”) through the FATCA registration website available at www.irs.gov/FATCA, to obtain its chapter 4 status as a (a) participating FFI, (b) registered deemed-compliant FFI, or (c) direct reporting NFFE, and must register as a QI by providing the information specified for renewal of QI status.
An NFFE that is acting as a sponsoring entity of a direct reporting NFFE and that obtains QI status must also register as a QI on the FATCA registration website by providing the information specified for renewal of QI status. Upon completion of the registration process, an FFI (other than a limited FFI or limited branch of an FFI) will be issued a GIIN to be used to identify itself to withholding agents and to tax administrators for FATCA reporting. In the case of an NFFE that is not acting on behalf of its shareholders, the approval notice will provide the date on which the QI-EIN is issued (which will serve as the effective date of the QI agreement).
For future years, the IRS intends to update the online FATCA registration website to allow prospective QIs to submit a QI application electronically and in such manner as the IRS may prescribe in future guidance or other instructions. Until this update to the FATCA registration website occurs, a prospective QI must submit to the IRS address identified above a paper Form 14345.
Complying with FATCA?
The LexisNexis® Guide to FATCA Compliance (2nd Edition) comprises 34 Chapters by 50 industry experts grouped in three parts: compliance program (Chapters 1–4), analysis of FATCA regulations (Chapters 5–16) and analysis of Intergovernmental Agreements (IGAs) and local law compliance challenges (Chapters 17–34), including intergovernmental agreements as well as the OECD’s TRACE initiative for global automatic information exchange protocols and systems. A free download of the first of the 34 chapters is available at http://www.lexisnexis.com/store/images/samples/9780769853734.pdf
Posted in FATCA | Tagged: FATCA, GIIN, QI, QI Agreement, Qualified Intermediary | 1 Comment »
5 new IGAs with 3 business days to go until 30% FATCA withholding on remaining 167 countries begins
Posted by William Byrnes on June 25, 2014
(Updated as of 19:00 EDT June 25, 2014, FFI #s updated June 26 with Haydon Perryman, Director of Compliance Solutions, Strevus)
FATCA FACTS
IGAs: 83 (72,034 FFI/branches)
Model 1: 74 (57,492 FFI/branches)
Model 2: 9 (13,834 FFI/branches)
Non-IGAs: 250 – 83 = 167 (5,212 FFI/branches)
Registered: 77,353 FFI/branches from 205 countries/jurisdictions
Approximately 25% (19,046) of the currently 77,353 registered FFIs are impacted by the FFI agreement changes, including FFIs registrations from the current nine Model 2 countries/jurisdictions and the FFI registrations from the 123 countries/jurisdictions without an IGA.
77,353 financial institutions and their branches registered from 205 countries and jurisdictions, of a total of 250 countries and jurisdictions recognized by the USA. 45 countries / jurisdictions do not yet have any FFI registrations. One of these 45 countries, Kosovo, has an IGA.
Of the total FFIs registered, 72,141 FFIs (93%) registered from the 83 countries/jurisdictions that as of June 25th (at 19:00 EDT) have an IGA. 57,492 FFIs registered from Model I IGA jurisdictions probably most as a category of a Model 1 Deemed Compliant FFI or as a branch. 13,834 (18%) of FFIs registered as Model 2 reporting FFIs or branches. These 13,834 Model 2 FFI registrations are impacted by the FFI Agreement changes of June 24, 2014.
Non IGA Registrations (Participating FFI and other)
The 5,212 FFIs registered either as Participating FFIs or branches from the remaining 123 countries/jurisdictions (without an IGA) currently are also impacted (note that while there are 83 IGAs as of today, no FFI registered from Kosovo as of the June 2nd GIIN list, thus it is 205 subtracting 82 IGAs).
30% FATCA Withholding Begins July 1st
Meanwhile, 30% withholding on all withholdable payments to nonparticipating FFIs in the 167 non-IGA countries/jurisdictions begins three business days from today, on July 1st. Most commentators expect a rush of over 300,000 FFI registrations by the end of 2014. Some predict more than a half million entities must still register, based on the UK’s HMRC estimate that 75,000 entities are impacted by FATCA within the United Kingdom (where less than 6,300 are currently registered on the GIIN list). Withholding on IGA jurisdiction non-compliant FFIs only begins January 1st.
Model 2 IGAs – 9 (13,834 FFI Registered)
Armenia (5-8-2014): 28
Austria (4-29-2014): 2,979
Bermuda (12-19-2013): 1,243
Chile (3-5-2014): 325
Hong Kong (5-9-2014): 1.540
Japan (6-11-2013): 3,252
Paraguay (6-6-2014): 17
Switzerland (2-14-2013): 4,041
Taiwan: 409
Below is a selection of the 77,353 registered from 119 of the total 205 countries and jurisdictions on the June 2nd GIIN list.
Afghanistan: 7
Andorra: 34
Anguilla: 71
Antigua & Barbuda: 36
Argentina: 270
Armenia: 28 <– IGA
Aruba: 14
Australia: 1,865 <– IGA
Austria: 2,979
Azerbaijan: 17 <– IGA
Bahamas: 611 <– IGA
Barbados: 124 <– IGA
Belgium: 250 <– IGA
Belize: 123
Bermuda: 1,243
Brazil: 2,259 <– IGA
Bulgaria: 73
BVI: 1,838 <– IGA
Canada: 2,265 <– IGA
Cayman Islands: 14,837 <– IGA
China: 212
Christmas Island: 1
Colombia: 173 <– IGA
Comoros Is.: 1
Costa Rica: 123 <– IGA
Cook Is.: 73
Croatia: 51 <– IGA
Curacao: 174 <– IGA
Cyprus: 280 <– IGA
Czech Republic: 93 <– IGA
Denmark: 187 <– IGA
Djibouti: 1
Dominica: 17 <– IGA
Dominican Republic: 68
Ecuador: 22
Egypt: 63
Equatorial Guinea: 1
Estonia: 27 <– IGA
Falkland Islands: 1
Finland: 467 <– IGA
France: 2,290 <– IGA
French Southern Territories: 1
Georgia: 24 <– IGA
Germany: 2,555 <– IGA
Gibraltar: 97 <– IGA
Greece: 92
Greenland: 1
Grenada: 32
Guadeloupe: 1
Guam: 3
Guatemala: 76
Guernsey: 2,396 <– IGA
Honduras: 48 <– IGA
Hong Kong: 1,540 <– IGA
Hungary: 102 <– IGA
Iceland: 5
India: 247 <– IGA
Indonesia: 308 <– IGA
Ireland: 1,757 <– IGA
Isle of Man: 313 <– IGA
Israel: 322 <– IGA
Italy: 457 <– IGA
Jamaica: 42 <– IGA
Japan: 3,252 <– IGA
Jersey: 1,619 <– IGA
North Korea: 4
South Korea: 397
Kuwait: 78
Latvia: 41
Lichtenstein: 240 <– IGA
Lithuania: 22 <– IGA
Luxembourg: 3,561 <– IGA
Macao: 37
Malta: 236 <– IGA
Mauritius: 728 <– IGA
Mexico: 419 <– IGA
Monaco: 99
Netherlands: 2,054 <– IGA
New Zealand: 335 <– IGA
Norway: 313 <– IGA
Other: 23
Panama: 451 <– IGA
Paraguay: 17 <– IGA
Peru: 165 <– IGA
Poland: 165 <– IGA
Portugal: 256 <– IGA
Qatar: 47 <– IGA
Romania: 110 <– IGA
Russia: 515
Saint Pierre & Miquelon: 1
San Marino: 15
Saudi Arabia: 18 <–IGA
Seychelles: 38 <– IGA
Singapore: 784 <– IGA
South Africa: 318 <– IGA
Spain: 1,188 <– IGA
Slovakia: 55 <– IGA
Slovenia: 21 <– IGA
St Kitts & Nevis: 71 <– IGA
St Lucia: 61 <– IGA
St. Vincent and the Grenadines: 105 <– IGA
Sweden: 313 <– IGA
Switzerland: 4,041 <– IGA
Taiwan: 409 <- IGA
Thailand: 768 <-IGA
Timor-Leste: 1
Togo: 4
Tonga: 1
Turkey: 66 <– IGA
Turkmenistan: 1 <-– IGA
Turks & Caicos: 28 <– IGA
Ukraine: 106
United Arab Emirates: 136 <– IGA
United Kingdom: 6,264 <– IGA
USA: 563
Uruguay: 132
Venezuela: 30
Wallis & Fortuna: 1
FFI Registration Among Model 1 IGAs and the Rest
Of a possible 250 countries and jurisdictions recognized by the US State Department and IRS (not including the 14 US dependencies for which FATCA withholding does not apply), 45 do not yet have an FFI registration. But of the 205 countries and jurisdictions with FFI registrations, 20% of the total registered FFIs are Cayman Islands firms (14,837) (see my article of June 8).
There is not one reliable number of how many financial entities in the world qualify as a financial institution requiring FATCA registration. The list of FFIs requiring registration includes, by example, trusts companies, certain trusts, life insurance companies, investment funds, banks. The IRS has said that “At this time, the full FFI list is expected to be less than 500,000 records.”
Some financial pundits are estimating as many as twice this figure. Yet it seems that the categories of ‘certified deemed compliant’ FFIs and exempt FFIs should soak up a number of small, local FFIs. Yet, the UK Revenue HMRC estimates 75,000 of its FFIs are impacted by FATCA (http://www.hmrc.gov.uk/fatca/itc-regs-2013.pdf – page 4) (down from 300,000 prior to the UK-USA IGA). If the UK, as one albeit important financial center, requires anything close to 75,000 FFI registrations, then the IRS figure of 500,000 FFI registrations is far too low. Note that the ‘500,000’ FFI figure, if it excludes the corresponding branch registrations in other jurisdictions, and if it excludes the five classifications of “Certified Deemed Compliant”, seems more realistic.
BRIC Registration
Brazil leads the BRIC countries with 2,258 FFI registered, followed by Russia (515), India (247) with China only having 212.
NAFTA Registrations
2,265 FFIs registered from Canada and Mexico at 419.
Major OECD Countries Registrations
The United Kingdom (6,264) Revenue has recently announced that it will not adopt the IRS issued six-month extension (until December 31, 2014) for entity accounts (see my articles of May 5th and 2nd). Thus, from July 1st, UK FFIs must document all personal and entity accounts under the requirements for “new” accounts as opposed as to “pre-existing” account due diligence procedures.
Australia (1,865), France (2,291), Germany (2,255), Ireland (1,757) and Netherlands (2,054).
European Financial Centers Registrations
Switzerland (4,041), Luxembourg (3,561), Austria (2,979), Lichtenstein (240). Guernsey (2,396), Jersey (1,619), Isle of Man (313) and Gibraltar (97).
Caribbean Financial Centers Registrations
BVI (1,838), Bahamas (611), Bermuda (1,243) and Panama (451).
State of Palestine Registrations
23 FFIs registered with the IRS, listed as from the State of Palestine. Primarily MENA banks and a branch of HSBC Middle East Bank. See June 8th article about this contentious issue.
North Korean Registrations
While North Korean remains a sanctioned country by OFAC (see http://www.treasury.gov/resource-center/sanctions/Programs/pages/nkorea.aspx) with a FINCEN AML update available at http://www.fincen.gov/statutes_regs/guidance/pdf/FIN-2013-A005.pdf, it had 4 FFI branches register.
“Other” Registrations
23 financial firms listed “other” as the country / jurisdiction. By example, Harneys Nevis by example should probably register under Nevis (or where it is incorporated, if not Nevis)? Why is the Austrian insurance group, Sigal Life UNIQA group Austria, registered under “Other”? Perhaps the July 1st list will have movement from “Other” to actual countries?
Interesting Research on the UK FFI List (by the subscriber “Edelweiss” in the comments on this blog)
Edelweiss has posted his research on the UK’s 6.264 registered FFIs (under comments to another one of this blog’s articles). I think his research bears repeating in this article. By example, he reviewed the list by GIIN and determined that about 1% of the global sign-ups of the June 2nd GIIN list are affiliated with AXA SA, the French financial services firm.
He then compares the 6,264 entities registered from the UK with the HMRC estimate (pg. 4) of 75,000 impacted FFIs (down from 300,000 prior to the IGA), finding that less than 10% of UK FFIs registered for the June GIIN list. Either the HMRC estimated horribly wrong, or most UK FFIs are still undertaking initial FATCA preparation (relying on the October 25th registration deadline imposed by HRMC instead).
The UK list is dominated by fund management firms and their various funds, private equity and the plethora of feeder funds investment trusts and quite a few trusts. Bridgepoint, a small UK private equity firm, has 72 entities (globally), while 3i, a similarly small UK private equity firm, has 45 entities (globally).
There are quite a few entities that appear to have names suggesting they are part of a private equity holding company structure.
Globally, he found 26 mentions of “Bidco”, 157 of “Holdco”, 37 “Midco”, 44 “Topco”, 144 “Acquisition”, 156 “Mezzanine”.
He found 321 instances of “LLP” and “265″ instances of partnership
Finally, he found 16 “deceased” and 33 “will trust”
Model 1 IGA – 31 (followed by number of registered FFIs/branches)
Australia (4-28-2014): 1,865
Belgium (4-23-2014): 250
Canada (2-5-2014): 2,265
Cayman Islands (11-29-2013): 14,837
Costa Rica (11-26-2013): 123
Denmark (11-19-2012): 187
Estonia (4-11-2014): 27
Finland (3-5-2014): 467
France (11-14-2013): 2,291
Germany (5-31-2013): 2,555
Gibraltar (5-8-2014): 97
Guernsey (12-13-2013): 2,396
Hungary (2-4-2014): 102
Honduras (3-31-2014): 48
Ireland (1-23-2013): 1,757
Isle of Man (12-13-2013): 313
Italy (1-10-2014): 457
Jamaica (5-1-2014): 42
Jersey (12-13-2013): 1,619
Liechtenstein (5-19-2014): 240
Luxembourg (3-28-2014): 3,561
Malta (12-16-2013): 236
Mauritius (12-27-2013): 728
Mexico (4-9-2014): 419
Netherlands (12-18-2013): 2,054
New Zealand (6-12-2014) 335
Norway (4-15-2013): 313
Slovenia (6-2-2014): 21
South Africa (6-9-2014): 318
Spain (5-14-2013): 1,188
United Kingdom (9-12-2012): 6,264
Model 2 IGA – 5
Jurisdictions that have reached agreements in substance:
Model 1 IGA – 43 (followed by number of registered FFIs)
Antigua and Barbuda (6-3-2014): 36
Azerbaijan (5-16-2014): 17
Bahamas (4-17-2014): 611
Barbados (5-27-2014): 124
Belarus (6-6-2014): 65
Brazil (4-2-2014): 2,259
British Virgin Islands (4-2-2014): 1,838
Bulgaria (4-23-2014): 73
Colombia (4-23-2014): 173
Croatia (4-2-2014): 51
Curaçao (4-30-2014): 174
Czech Republic (4-2-2014): 93
Cyprus (4-22-2014): 280
Dominica (6-19-2014): 17 < – new entry
Georgia (6-12-201): 25
Grenada (6-16-2014): 32 < – new entry
India (4-11-2014): 247
Indonesia (5-4-2014): 308
Israel (4-28-2014): 322
Kosovo (4-2-2014) – nil
Kuwait (5-1-2014): 78
Latvia (4-2-2014): 41
Lithuania (4-2-2014): 22
Panama (5-1-2014): 451
Peru (5-1-2014): 165
Poland (4-2-2014): 165
Portugal (4-2-2014): 256
Qatar (4-2-2014): 47
Romania (4-2-2014): 110
St. Kitts and Nevis (6-4-2014): 71
St. Lucia (6-12-2014): 61
St. Vincent and the Grenadines (6-2-2014): 105
Saudi Arabia (6-24-2014): 18 < – new entry
Seychelles (5-28-2014): 38
Singapore (5-5-2014): 784
Slovak Republic (4-11-2014): 55
South Korea (4-2-2014): 397
Sweden (4-24-2014): 313
Thailand (6-24-2014): 768 < – new entry
Turkey (6-3-2014): 66
Turkmenistan (6-3-2014): 1
Turks and Caicos Islands (5-12-2014): 28
United Arab Emirates (5-23-2014): 136
Model 2 IGA – 4
Paraguay (6-6-2014): 18
Taiwan (6-23-2014): 409 < – new entry
Practical Compliance Guide for FATCA
The LexisNexis® Guide to FATCA Compliance (2nd Edition) comprises 34 Chapters by 50 industry experts grouped in three parts: compliance program (Chapters 1–4), analysis of FATCA regulations (Chapters 5–16) and analysis of Intergovernmental Agreements (IGAs) and local law compliance challenges (Chapters 17–34), including intergovernmental agreements as well as the OECD’s TRACE initiative for global automatic information exchange protocols and systems.
Posted in FATCA | Tagged: FATCA, FFI, GIIN, IGA, Withholding tax | Leave a Comment »
Updated FATCA GIIN List of FFI Registrations by Country and IGA
Posted by William Byrnes on June 16, 2014
Below is a selection of the 77,353 registered from 115 of the total 205 countries and jurisdictions on the June 2nd list. Of the total registered as of June, 70,811 FFIs (91.5%) registered from the 78 countries and jurisdictions that as of June 15th have an IGA. Thus, these 70,811 probably registered either as Deemed Compliant FFIs or as branches by the initial May 5th extended deadline.
Only 6,542 FFIs registered from the remaining 172 countries and jurisdictions either as Participating FFIs or branches. Withholding agents are finalizing systems to begin 30% withholding on the Non-Participating FFIs within these 172 non-IGA countries. Withholding on IGA jurisdiction non-compliant FFIs only begins January 1st.
Andorra: 33
Anguilla: 70
Antigua & Barbuda: 35
Argentina: 269
Armenia: 27 <– IGA
Aruba: 13
Australia: 1,864 <– IGA
Austria: 2,978
Azerbaijan: 16 <– IGA
Bahamas: 610 <– IGA
Barbados: 123 <– IGA
Belgium: 249 <– IGA
Belarus: 64
Belize: 122
Bermuda: 1,242
Brazil: 2,258 <– IGA
Bulgaria: 72
BVI: 1,837 <– IGA
Canada: 2,264 <– IGA
Cayman Islands: 14,836 <– IGA
China: 211
Colombia: 172 <– IGA
Costa Rica: 122 <– IGA
Cook Is.: 72
Croatia: 50 <– IGA
Curacao: 173 <– IGA
Cyprus: 279 <– IGA
Czech Republic: 92 <– IGA
Denmark: 186 <– IGA
Dominica: 17
Dominican Republic: 67
Egypt: 62
Estonia: 26 <– IGA
Finland: 466 <– IGA
Germany: 2,554 <– IGA
Gibraltar: 96 <– IGA
Greece: 91
Grenada: 31
Guatemala: 75
Guernsey: 2,395 <– IGA
Honduras: 47 <– IGA
Hong Kong: 1,539 <– IGA
Hungary: 101 <– IGA
India: 246 <– IGA
Indonesia: 307 <– IGA
Ireland: 1,756 <– IGA
Isle of Man: 312 <– IGA
Israel: 321 <– IGA
Italy: 456 <– IGA
Jamaica: 41 <– IGA
Japan: 3,251 <– IGA
Jersey: 1,618 <– IGA
South Korea: 396
Kuwait: 77
Latvia: 40
Lichtenstein: 239 <– IGA
Lithuania: 21 ß IGA
Luxembourg: 3,560 ß IGA
Macao: 36
Malta: 235 <– IGA
Mauritius: 727 <– IGA
Mexico: 418 <– IGA
Monaco: 98
Netherlands: 2,053 <– IGA
New Zealand: 334 <– IGA
Norway: 312 <– IGA
Other: 22
Panama: 450 <– IGA
Peru: 164 <– IGA
Poland: 164 <– IGA
Portugal: 255 <– IGA
Qatar: 46 <– IGA
Romania: 109 <– IGA
Russia: 514
San Marino: 14
Saudi Arabia: 17
Seychelles: 37 <– IGA
Singapore: 783 <– IGA
South Africa: 317 <– IGA
Spain: 1,187 <– IGA
Slovakia: 54 <– IGA
Slovenia: 20 <– IGA
St Kitts & Nevis: 70 <– IGA
St Lucia: 60 <– IGA
St. Vincent and the Grenadines: 104 <– IGA
Sweden: 312 <– IGA
Switzerland: 4,040 <– IGA
Taiwan: 408
Turkey: 65 <– IGA
Turks & Caicos: 27 <– IGA
Ukraine: 105
United Arab Emirates: 135 <– IGA
United Kingdom: 6,263 <– IGA
USA: 562
Uruguay: 131
Venezuela: 29
Of a possible 250 countries and jurisdictions recognized by the US State Department and IRS (not including the 14 US dependencies for which FATCA withholding does not apply), 45 do not yet have an FFI registration. But of the 205 countries and jurisdictions with FFI registrations, 20% of the total registered FFIs are Cayman Islands firms (14,836) (see my article of June 8).
Brazil leads the BRIC countries with 2,258 FFI registered, followed by Russia (514), India (246) with China only having 211.
2,264 FFIs registered from Canada and Mexico at 418.
The United Kingdom (6,263) Revenue has recently announced that it will not adopt the IRS issued six-month extension (until December 31, 2014) for entity accounts (see my articles of May 5th and 2nd). Thus, from July 1st, UK FFIs must document all personal and entity accounts under the requirements for “new” accounts as opposed as to “pre-existing” account due diligence procedures.
Australia (1,864), France (2,290), Germany (2,254), Ireland (1,756) and Netherlands (2,053).
Switzerland (4,040), Luxembourg (3,560), Austria (2,978), Lichtenstein (239). Guernsey (2,395), Jersey (1,618), Isle of Man (312) and Gibraltar (96).
BVI (1,837), Bahamas (610), Bermuda (1,242) and Panama (450).
Interesting Research on the UK FFI List (by “Edelweiss” in the comments on this blog)
Edelweiss has posted his research on the UK’s 6.263 registered FFIs (under comments to another one of this blog’s articles). I think his research bears repeating in this article. By example, he reviewed the list by GIIN and determined that about 1% of the global sign-ups of the June 2nd GIIN list are affiliated with AXA SA, the French financial services firm.
He then compares the 6,263 entities registered from the UK with the HMRC estimate (pg. 4) of 75,000 impacted FFIs (down from 300,000 prior to the IGA), finding that less than 10% of UK FFIs registered for the June GIIN list. Either the HMRC estimated horribly wrong, or most UK FFIs are still undertaking initial FATCA preparation (relying on the October 25th registration deadline imposed by HRMC instead).
There are quite a few entities that appear to have names suggesting they are part of a private equity holding company structure. I presume they have an affiliation with a US private equity shareholder. Globally, there are 26 mentions of “Bidco”, 157 of “Holdco”, 37 “Midco”, 44 “Topco”, 144 “Acquisition”, 156 “Mezzanine” (not exclusively private equity, also specialty finance like mezz funds).
I found 321 instances of “LLP” and “265″ instances of partnership
I found 16 “deceased” and 33 “will trust”
Three Questions raised by Edelweiss
For some reason, the large UK retailers Marks and Spencer (a plc) and John Lewis (a co-operative) found it necessary to register. M&S offers a savings account (which presumably explains why) but John Lewis doesn’t. Could it be credit card related?
Response: A FFI is eligible to be classified as a “registered deemed-compliant” FFI (“RDCFFI”) if it completes a registration process with the IRS (See Lexis Guide to FATCA Compliance § 7.04) and either is a Reporting Model 1 FFI, or falls within one of six categories listed in Treasury Regulations Section 1.1471-5(f)(1)(i). These six categories include:
local FFIs;
nonreporting members of participating FFI groups;
qualified collective investment vehicles;
restricted funds;
qualified credit card issuers; or
sponsored investment entities and controlled foreign corporations.
Qualified Credit Card Issuers
A “qualified credit card issuer” is an entity that is an FFI solely because it is an issuer of credit cards that accepts deposits only when a customer makes a payment in excess of a balance due on the card and the overpayment is not immediately returned to the customer. …
Also present is Alliance-Boots, the UK’s largest pharmacy. They have 16 entities in the UK and Ireland (under AB Acquisition and Alliance Boots) though I assume this is because they are part owned by KKR.
I would be curious to get your take on why Nestle Suisse SA found it necessary to register as an FFI. Is this to avoid confiscation of 30% of principal and interest on the repayment of intercompany loans from a US subsidiary? Is it because it’s a finance subsidiary and they have US source income from bonds?
Posted in FATCA, Uncategorized | Tagged: FATCA, FFI, GIIN, IGA | 1 Comment »
FATCA Guidance for UK Trustees
Posted by William Byrnes on May 7, 2014
The Law Society, Institute of Chartered Accountants, and STEP published guidance with an accompanying flow chart that are intended to help United Kingdom trustees and their advisers determine whether FATCA registration is required. See Law Society and Institute of Chartered Accountants FATCA Guidance for UK Trust Companies (May 2014) (Chartered Accountants link)
The Law Society states that: “This guidance is relevant for all UK trusts and trustees, whether or not they have any known US connections. UK financial institutions must meet the requirements of the Treaty and UK legislation in order to avoid the withholding tax. All UK trusts and trustees, whether or not they have any known US connections, need to consider their status under the UK/US agreement. If they are required to register with the IRS under the agreement, they must do so by 25 October 2014.”
The guidance states that: “The major impact of FATCA will fall on banks and investment houses but it is essential to understand that firms such as yours are directly affected, even if you only have UK clients. As partners (or as directors, administrators and trustees) you have direct UK legal obligations that must be met if you are to avoid financial (and reputational) penalties. The full guidance is available at http://www.hmrc.gov.uk/drafts/uk-us-fatca-guidance-notes.pdf.” (see page 2).
See the Flow Chart for UK trustees (under the UK/USA Intergovernmental Agreement (IGA))
Guidance excerpts below …
 Identify and classify the entities comprising your practice and the client entities with which you are connected such as trusts;
 Register any FI for a Global Intermediaries Identification Number (GIIN);
 Review your practice systems and implement any necessary changes to:
1) engagement letters
2) client take-on process
3) client identification
4) establishing reportable transactions
5) effecting the report
6) client communications;
 Make the appropriate reports to HMRC.
United Kingdom Deadline
The deadline is October 2014, by which time you need to register any FIs with the IRS as an FI. At that time you will also need to demonstrate that you have adequate systems in
place to identify and record US Persons. The first reporting will be for the calendar year 2015, but systems will need to be put in place now. The mechanics of reporting, which will
be to HMRC, are not yet known.
Where there is a corporate trustee, it registers and reports on the trust; the individual trusts do not need to register or report. It may be worth considering whether there is merit in
appointing a corporate trustee in place of or in addition to the individual trustees to eliminate the need for the individual trust to register and report. The responsibility for doing so is
passed to the corporate trustee. In this situation the trust itself becomes known as a Trustee Documented Trust.
Owner documented trusts
Instead of registering it may be possible for trustees to opt for owner documented status. They can only do so without challenge if they have enough regular information to prove that
all owners (beneficiaries who receive one or more distributions) are and remain non-US Persons.
They will also have to recertify their status every three years via form W8-BEN-E and if at any time the trustees become aware that an owner has become a US person, they will have
to register with the IRS and report to HMRC in the normal way. Further, they will need to appoint a withholding agent. It is understood that banks and investment businesses, which
already act as Qualifying Intermediaries for US tax purposes, are currently considering whether they will be prepared to offer this service. The current indications are that they will
Trustees must notify withholding agents of any change in status within thirty days. They will need to have systems and procedures in place to ensure that this is adhered to.
Creation of new trusts
The current regulations are unclear as to the deadline for obtaining a GIIN or otherwise regulating the FATCA status of trusts created after October 2014, i.e. once the first set of
registration is completed. Taking into account the requirements of banks and other institutions to be able to operate accounts, the advice must be that FATCA status, and
registration as necessary, should be an integral part of the process for creating any new trust and completed as soon as practicable.
There is a particular point of concern surrounding executors. Executors themselves are not entities within FATCA and will therefore be reported upon as usual. There is one exception in that the accounts of deceased persons are not reportable accounts as long as the FI concerned is in possession of the death certificate. However, it is not uncommon for
executors to become the trustees of a will trust and the point of transition between the two can be difficult to identify with precision. Practitioners will need to be alert for this
circumstance and ensure that the appropriate steps are taken in good time, including whether a corporate trustee should be appointed, and align with the records at banks and
investment managers etc.
The LexisNexis® Guide to FATCA Compliance (2nd Edition) comprises 34 Chapters grouped in three parts: compliance program (Chapters 1–4), analysis of FATCA regulations (Chapters 5–16) and analysis of Intergovernmental Agreements (IGAs) and local law compliance requirements (Chapters 17–34), including information exchange protocols and systems. The 34 chapters include many practical examples to assist a compliance officer contextualize the regulations, IGA provisions, and national rules enacted pursuant to an IGA. Chapters include by example an in-depth analysis of the categorization of trusts pursuant to the Regulations and IGAs, operational specificity of the mechanisms of information capture, management and exchange by firms and between countries, and insights as to the application of FATCA and the IGAs for BRIC and European country chapters.
If you are interested in discussing the Master or Doctorate degree in the areas of financial services or international taxation, please contact me https://profwilliambyrnes.com/online-tax-degree/
Posted in FATCA | Tagged: FATCA, GIIN, IGA, Trustees, trusts, UK | 1 Comment »
5 New IGAs Bring Total to 62 Published by May 5 Deadline for FATCA Registration ! Only 150 to go …
Posted by William Byrnes on May 6, 2014
How many IGAs are left to be agreed by Treasury?
The USA recognizes 195 independent states in the world, 67 dependencies of states, and has contacts with Taiwan.
Of the 67 dependencies, some like the French departments of French Guiana, Guadeloupe, Martinique, Mayotte and Reunion, are included as part of the state, others like Antarctica have no economic relevance. More important, approximately 16 dependencies have at least enough potential US source income exposure for local financial firms to warrant an IGA, such as Bermuda, Cayman Islands, and Hong Kong. And then there’s Taiwan.
That means approximately 212 states and jurisdictions, give or take a couple, could benefit from an IGA. 62 have one recognized by US Treasury as being in effect as of yesterday May 5. FFIs in IGA jurisdictions have an extension to register with the IRS – until December 22, 2014 to obtain their GIINs.
So at least 150 IGAs to go by my count….
The May 5th Deadline for these Non-IGA Countries and Jurisdictions
FATCA registration remains open of course, but the deadline for inclusion on the June 2nd participating foreign financial institution list (“PFFI”) passed yesterday on May 5. Yesterday’s article covered the May 5th deadline (and consequences of passing) that applied to all FFIs in these 150 non-IGA states and jurisdictions (see https://profwilliambyrnes.com/2014/05/05/which-fatca-deadlines-did-treasurys-may-2nd-notice-extend-is-todays-deadline-still-in-place/)
Did all the FFIs register that are in countries and jurisdictions that are not yet included on the list, such as China, Hong Kong and Taiwan, as well as the Middle Eastern jurisdictions such as United Arab Emirates and Saudi Arabia? What about Russia and Ukraine institutions? What IGA will apply to Crimea? It is possible that on July 1st an unregistered FFI is considered non-participating (NPFFI) for purposes of withholding, but by example, on August 1st its country agrees an IGA in substance that Treasury announces on its FATCA site and the NPFFI goes back to FFI non-withholding status because of the IGA, at least until the final Dec 22 deadline applying to the IGA FFIs.
56 days remain until the July 1st application of FATCA’s 30% withholding applies to payments from US sources for all these FFIs that missed the deadline.
IGA FATCA Registration Classification
Financial Institutions that are treated as Reporting Financial Institutions under a Model 1 IGA register as Registered Deemed-Compliant Foreign Financial Institutions, whereas Financial Institutions that are treated as Reporting Financial Institutions under a Model 2 IGA register as Participating Foreign Financial Institutions.
The following jurisdictions are treated as having a FATCA intergovernmental agreement (IGA) in effect. (see the 8 IGA additions and 1 IGA Mexican revision update at https://profwilliambyrnes.com/2014/05/01/iga-list-expands-to-55-mexico-iga-revised/)
jurisdictions that have reached agreements in substance (beginning on the date indicated in parenthesis):
Model 1 IGA = 31 (in red added since my last IGA update)
Bahamas (4-17-2014)
Brazil (4-2-2014)
British Virgin Islands (4-2-2014)
Bulgaria (4-23-2014)
Columbia (4-23-2014)
Croatia (4-2-2014)
Curaçao (4-30-2014)
Czech Republic (4-2-2014)
Cyprus (4-22-2014)
Gibraltar (4-2-2014)
India (4-11-2014)
Indonesia (5-4-2014) <— new
Israel (4-28-2014)
Kosovo (4-2-2014)
Kuwait (5-1-2014) <— new
Latvia (4-2-2014)
Liechtenstein (4-2-2014)
Lithuania (4-2-2014)
New Zealand (4-2-2014)
Panama (5-1-2014) <— new
Peru (5-1-2014) <— new
Poland (4-2-2014)
Portugal (4-2-2014)
Qatar (4-2-2014)
Singapore (5-5-2014) <— new
Slovak Republic (4-11-2014)
Slovenia (4-2-2014)
South Africa (4-2-2014)
South Korea (4-2-2014)
Sweden (4-24-2014)
Romania (4-2-2014)
Model 2 IGA = 0
jurisdiction that have signed and entered into a formal IGA
Model 1 IGA = 26
Australia (4-28-2014)
Belgium (4-23-2014)
Canada (2-5-2014)
Cayman Islands (11-29-2013)
Costa Rica (11-26-2013)
Denmark (11-19-2012)
Estonia (4-11-2014)
Finland (3-5-2014)
France (11-14-2013)
Germany (5-31-2013)
Guernsey (12-13-2013)
Hungary (2-4-2014)
Honduras (3-31-2014)
Ireland (1-23-2013)
Isle of Man (12-13-2013)
Italy (1-10-2014)
Jamaica (5-2-2014) <— IGA published, moved from above
Jersey (12-13-2013)
Luxembourg (3-28-2014)
Malta (12-16-2013)
Mauritius (12-27-2013)
Mexico (4-17-2014) <— IGA revised
Netherlands (12-18-2013)
Norway (4-15-2013)
Spain (5-14-2013)
United Kingdom (9-12-2012)
Model 2 IGA = 5
Austria (4-29-2014)
Bermuda (12-19-2013)
Chile (3-5-2014)
Japan (6-11-2013)
Switzerland (2-14-2013)
Practical Compliance Aspects of FATCA and GATCA : The LexisNexis® Guide to FATCA Compliance (2nd Edition) comprises 34 Chapters grouped in three parts: compliance program (Chapters 1–4), analysis of FATCA regulations (Chapters 5–16) and analysis of Intergovernmental Agreements (IGAs) and local law compliance requirements (Chapters 17–34), including information exchange protocols and systems. The 34 chapters include many practical examples to assist a compliance officer contextualize the regulations, IGA provisions, and national rules enacted pursuant to an IGA. Chapters include by example an in-depth analysis of the categorization of trusts pursuant to the Regulations and IGAs, operational specificity of the mechanisms of information capture, management and exchange by firms and between countries, and insights as to the application of FATCA and the IGAs for BRIC and European country chapters.
Posted in FATCA | Tagged: FATCA, GIIN, IGA | 1 Comment »
new FATCA FAQs released by IRS
Posted by William Byrnes on April 18, 2014
FATCA – FAQs General
Qualified Intermediaries/Withholding Foreign Partnerships/Withholding Foreign Trusts
IGA Registration
Expanded Affiliated Groups
Sponsoring/Sponsored Entities
Responsible Officers and Points of Contact
Exempt Beneficial Owners
NFFEs
FATCA Registration System Technical Support
# Questions Answers
How does a Financial Institution that is not currently a Qualified Intermediary (“QI”), a Withholding Foreign Partnership (“WP”), or a Withholding Foreign Trust (“WT”) register to become one?
The process to become a QI, WP or WT has not been modified by the provisions of FATCA.
The application for Qualified Intermediary status can be found here: QI Application
Information on acquiring Withholding Foreign Partnership, or Withholding Foreign Trust status can be found here: WP/WT Application
How do FIs that are currently QIs, WPs and WTs renew their agreements?
Existing QIs, WPs and WTs are required to renew their QI agreements through the FATCA registration website as part of their FATCA registration process.
All QI, WP, or WT agreements that would otherwise expire on December 31, 2013 will be automatically extended until June 30, 2014. (Notice 2013-43; 2013-31 IRB 113).
I am not currently a QI/WP/WT. Can I use the LB&I registration portal to register for FATCA and become a new QI/WP/WT?
QI/WP /WT status can only obtained by completing and submitting a Form 14345 (“QI Intermediary Application”) and Form SS-4 (“Application for Employer Identification Number”) directly to the QI Program. Interested QIs/WPs/WT should submit the required paperwork to the QI program and separately use the FATCA registration portal to obtain a GIIN for FATCA purposes. FFIs can not become a new QI/WP/WT through the FATCA portal.
Applications for QI/WP/WT status can be made to:
IRS-Foreign Intermediary Program
Attn: QI/WP/WT Applications
290 Broadway, 12th floor
New York City, New York 10007
Note: Form 14345 (“QI Intermediary Application”) should be used for WPs and WTs in addition to QIs.
Must an FI become a QI/WP/WT in order to register under FATCA?
An FI is not required to obtain QI/WP or WT status to register under FATCA. If at the time of FATCA registration, the FI does not have in effect a withholding agreement with the IRS to be treated as a QI, WP or WT, the FI will indicate “Not applicable” in box 6 and will continue with the registration process.
Please provide a link that lists the jurisdictions treated as having in effect a Model 1 or Model 2 IGA.
The U.S. Department of Treasury’s list of jurisdictions that are treated as having an intergovernmental agreement in effect can be found by clicking on the following link: IGA LIST
How do Foreign Financial Institutions in Model 1 jurisdictions register on the FATCA registration website?
Financial Institutions that are treated as Reporting Financial Institutions under a Model 1 IGA (see the list of jurisdictions treated as having an IGA in effect at IGA LIST) should register as Registered Deemed-Compliant Foreign Financial Institutions.
More information on registration can be found in the FATCA Registration Online User Guide:User Guide Link (See Section 2.4 “Special Rules for Registration”)
How do Foreign Financial Institutions in Model 2 jurisdictions register on the FATCA registration website?
Financial Institutions that are treated as Reporting Financial Institutions under a Model 2 IGA (see the list of jurisdictions treated as having an IGA in effect at IGA LIST) should register as Participating Foreign Financial Institutions.
We are an FFI in a country that has not signed an IGA, and the local laws of our country do not allow us to report U.S. accounts or withhold tax. What is our FATCA classification?
Unless the Treasury website provides that your country is treated as having an IGA in effect, then, because of its local law restrictions, this FFI should register as a Limited FFI provided it meets the definition shown directly below. See FATCA – Archive for a list of countries treated as having an IGA in effect.
A Limited FFI means an FFI that, due to local law restrictions, cannot comply with the terms of an FFI Agreement, or otherwise be treated as a PFFI or RDCFFI, and that is agreeing to satisfy certain obligations for its treatment as a Limited FFI.
For registration purposes, can an EAG with a Lead FI and 2 Member FIs be divided into: (1) a group with a Lead FI and a member FI, and (2) a member FI that will register as a Single FI?
Yes. An EAG may organize itself into subgroups, so long as all entities with a registration requirement are registered. An FI that acts as a Compliance FI for any members of the EAG is, however, required to register each such member as would a Lead FI for such members.
What is required for an entity to be a Lead FI?
A Lead FI means a USFI, FFI, or a Compliance FI that will initiate the FATCA Registration process for each of its Member FIs that is a PFFI, RDCFFI, or Limited FFI and that is authorized to carry out most aspects of its Members’ FATCA Registrations. A Lead FI is not required to act as a Lead FI for all Member FIs within an EAG. Thus, an EAG may include more than one Lead FI that will carry out FATCA Registration for a group of its Member FIs. A Lead FI will be provided the rights to manage the online account for its Member FIs. However, an FFI seeking to act as a Lead FI cannot have Limited FFI status in its country of residence. See Rev. Proc. 2014-13 to review the FFI agreement for other requirements of a Lead FI that is also a participating FFI.
We are a Sponsoring Entity, and we would like to register our Sponsored Entities. How do we register our Sponsored Entities?
The Sponsoring Entity that agrees to perform the due diligence, withholding, and reporting obligations of one or more Sponsored Entities pursuant to Treas. Reg. §1.1471-5(f)(1)(i)(F) should register with the IRS via the FATCA registration website to be treated as a Sponsoring Entity. To allow a Sponsoring Entity to register its Sponsored Entities with the IRS, and, as previewed in Notice 2013-69, the IRS is developing a streamlined process for Sponsoring Entities to register Sponsored Entities on the FATCA registration website. Additional information about this process will be provided by the IRS at a later date.
While a Sponsoring Entity is required to register its Sponsored Entities for those entities to obtain GIINs, the temporary and proposed regulations provide a transitional rule that, for payments prior to January 1, 2016, permit a Sponsored Entity to provide the GIIN of its Sponsoring Entity on withholding certificates if it has not yet obtained a GIIN. Thus, a Sponsored Entity does not need to provide its own GIIN until January 1, 2016 and is not required to register before that date.
What is a Point Of Contact (POC)?
The Responsible Officer listed on line 10 of Form 8957 (or the online registration system) can authorize a POC to receive FATCA-related information regarding the FI, and to take other FATCA-related actions on behalf of the FI. While the POC must be an individual, the POC does not need to be an employee of the FI. For example, suppose that John Smith, Partner of X Law Firm, has been retained and been given the authority to help complete and submit the FATCA Registration on behalf of an FI. John Smith should be identified as the POC, and in the Business Title field for this POC, it should state Partner of X Law Firm.
Is the Responsible Officer required to be the same person for all lines on Form 8957 or the online registration (“FATCA Registration”)?
No, it is not required that the Responsible Officer (“RO”) be the same person for all lines on Form 8957 or the online registration. It is possible, however, that the same person will have the required capacity to serve as the RO for all FATCA Registration purposes.
The term “RO” is used in several places in the FATCA Registration process. In determining an appropriate RO for each circumstance, the Financial Institution (“FI”) or direct reporting NFFE should review the capacity requirements and select an individual who meets those requirements. This will be a facts and circumstances determination.
Please note that the responsible officer used for registration purposes may differ from the certifying responsible officer of an FFI referenced in Treasury Regulation §1.1471-1(b)(116). (See, however, below regarding “Delegation of RO Duties.”)
Below is a description of the required RO capacity per line:
Language from the Form 8957 Instructions and the FATCA Online Registration User Guide specifies that the RO for question 10 purposes is a person authorized under applicable local law to establish the statuses of the entity’s home office and branches as indicated on the registration form. (See FAQ below for what it means to “establish the FATCA statuses” of the FI’s home office and branches or direct reporting NFFE.)
Part 1, Question 11b (Point of Contact authorization)
The RO identified in question 11b must be an individual who is authorized under local law to consent on behalf of the FI or direct reporting NFFE (“an authorizing individual”) to the disclosure of FATCA-related tax information to third parties. By listing one or more Points of Contact (each, a “POC”) in question 11b and selecting “Yes” in question 11a, the authorizing individual identified at the end of question 11b (to the right of the checkbox) is providing the IRS with written authorization to release the entity’s FATCA-related tax information to the POC. This authorization specifically includes authorization for the POC to complete the FATCA Registration (except for Part 4), to take other FATCA-related actions, and to obtain access to the FI’s (or direct reporting NFFE’s) tax information. Once the authorization is granted, it is effective until revoked by either the POC or by an authorizing individual of the FI or direct reporting NFFE.
The authority required for an individual to be an RO for purposes of Part 4 is substantially similar to the authority required for RO status under Treas. Reg. § 1.1471-1(b)(116).
The RO designated in Part 4 must be an individual with authority under local law to submit the information provided on behalf of the FI or direct reporting NFFE. In the case of FIs or FI branches not governed by a Model 1 IGA, this individual must also have authority under local law to certify that the FI meets the requirements applicable to the FI status or statuses identified on the registration form. This individual must be able to certify, to the best of his or her knowledge, that the information provided in the FI’s or direct reporting NFFE’s registration is accurate and complete. In the case of an FI, the individual must be able to certify that the FI meets the requirements applicable to the status(es) identified in the FI’s registration. In the case of a direct reporting NFFE, the individual must be able to certify that the direct reporting NFFE meets the requirements of a direct reporting NFFE under Treas. Reg. § 1.1472-1(c)(3).
An RO (as defined for purposes of Part 4) can delegate authorization to complete Part 4 by signing a Form 2848 “Power of Attorney Form and Declaration of Representative” or other similar form or document (including an applicable form or document under local law giving the agent the authorization to provide the information required for the FATCA Registration).
Note: While the certification in Part 4 of the online registration does not include the term “responsible officer,” the FATCA Online Registration User Guide provides that the individual designated in Part 4 must have substantially the same authority as the RO as defined for purposes of Form 8957, Part 4.
Delegation of RO Duties
While the ROs for purposes of Question 10, Question 11b, and Part 4 of the FATCA Registration may be different individuals, in practice it will generally be the same individual (or his/her delegate)). The regulatory RO is responsible for establishing and overseeing the FFI’s compliance program. The regulatory RO may, but does not necessarily have to, be the registration RO for purposes of 1) ascertaining and completing the chapter 4 statuses in the registration process; 2) receiving the GIIN and otherwise interacting with the IRS in the registration process; and 3) making the Part 4 undertakings. Alternatively, the regulatory RO, or the FFI (through another individual with sufficient authority), may delegate each of these registration roles to one or more persons pursuant to a delegation of authority (such as a Power of Attorney) that confers the particular registration responsibility or responsibilities to such delegate(s). The scope of the delegation, and the delegate’s exercise of its delegated authority within such scope, will limit the scope of the potential liability of the delegate under the rules of agency law , to the extent applicable. The ultimate principal, whether that is the regulatory RO or the FFI, remains fully responsible in accordance with the terms and conditions reflected in the regulations, and other administrative guidance to the extent applicable under FATCA, the regulations.
The Instructions for Form 8957 state that for purposes of Part 1, question 10, “. . . RO means the person authorized under applicable local law to establish the statuses of the FI’s home office and branches as indicated on the registration form.” What does it mean for an RO to have the authority to “establish the statuses of the FI’s home office and branches as indicated on the registration form”?
To have the authority to “establish the statuses” for purposes of question 10, an RO must have the authority to act on behalf of the FI to represent the FATCA status(es) of the FI to the IRS as part of the registration process. This RO must also have the authority under local law to designate additional POCs.
My FI plans on employing an outside organization (or individual) solely for the purpose of assisting with the registration process. Once registration is complete, or shortly thereafter, my FI intends to discontinue its relationship with this organization. Is this permissible under the FATCA registration system? How should my FI use the registration system to identify this relationship?
Yes, the FI or direct reporting NFFE may employ an outside organization to assist with FATCA registration and discontinue the relationship with the outside organization once registration is complete. As part of the registration process, an FI or direct reporting NFFE may appoint up to five POCs who are authorized to take certain FATCA-related actions on behalf of the entity, including the ability to complete all parts of the FATCA Registration (except for Part 4), to take other appropriate or helpful FATCA-related actions, and to obtain access to the entity’s FATCA-related tax information. The POC authorization must be made by an RO within the meaning of Part 1, question 10. Part 4 must be completed by the RO or a duly authorized agent of the RO. (See FAQ 1 for a discussion of the process for delegating authorization to complete Part 4.)
Once the services of a POC are no longer needed, the RO may log into the online FATCA account and delete the POC. This process revokes the POC’s authorization. At this point, the Responsible Officer can input a new POC, or leave this field blank if they no longer wish to have any POC other than the RO listed on Line 10.
If a third-party adviser that is an entity is retained to help the FI or direct reporting NFFE complete its FATCA registration process, the name of the third-party individual adviser that will help complete the FATCA registration process should be entered as a POC in Part 1, question 11b, and the “Business Title” field for that individual POC should be completed by inserting the name of the entity and the POC’s affiliation with the entity. For example, suppose that John Smith, Partner of X Law Firm, has been retained and been given the authority to help complete the FATCA Registration on behalf of FI Y. John Smith should be identified as the POC, and in the Business Title field for this POC, it should state Partner of X Law Firm.
Are U.S. Financial Institutions (USFIs) required to register under FATCA? If so, under what circumstances would a USFI register?
A USFI is generally not required to register under FATCA. However, a USFI will need to register if the USFI chooses to become a Lead FI and/or a Sponsoring Entity or seeks to maintain and renew the QI status of a foreign branch that is a QI. Furthermore, a USFI with a foreign branch that is a reporting Model 1 FFI is required to register on behalf of its foreign branches (and should identify each such branch when registering). A USFI with non-QI branch operations in a Model 2 jurisdiction or in a non-IGA jurisdiction is not required to register with the IRS.
Is a Foreign Financial Institution (“FFI”) required to obtain an EIN?
If the FFI has a withholding obligation and will be filing Forms 1042 and Forms 1042-S with the Internal Revenue Service, it will be required to have an EIN. Please see publication 515 (“Withholding of Tax on Nonresident Aliens and Foreign Entities”) for further information about U.S. Withholding requirements. SeePub. 515. An FFI is also required to obtain an EIN when it is a QI, WP, or WT (through the application process to obtain any such status) or when the FFI is a participating FFI that elects to report its U.S. accounts on Forms 1099 under Treas. Reg. §1.1471-4(d)(5).
How does a FFI apply for a EIN if it does not already have one?
If a FFI does not have an EIN, it may apply for one using Form SS-4 (“Application for Employer Identification Number”) or the online registration system. See Apply-for-an-Employer-Identification-Number-(EIN)-Onlinefor more information.
We are a foreign central bank of issue. Will we be subject to FATCA withholding if we do not register?
You will generally be exempt from FATCA Registration and withholding if you meet the requirements to be treated as an exempt beneficial owner (e.g. as a foreign central bank of issue described in Treas. Reg. § 1.1471-6(d), as a controlled entity of a foreign government under Treas. Reg. §1.1471-6(b)(2), or as an entity treated as either of the foregoing under an applicable IGA). A withholding agent is not required to withhold on a withholdable payment to the extent that the withholding agent can reliably associate the payment with documentation to determine the portion of the payment that is allocable to an exempt beneficial owner in accordance with the regulations. However, an exempt beneficial owner may be subject to withholding on payments derived from the type of commercial activity described in Treas. Reg. § 1.1471-6(h).
We are a foreign pension plan. Will we be subject to FATCA withholding if we do not register?
You will be exempt from FATCA Registration and withholding if you meet the requirements to be treated as a retirement fund described in Treas. Reg. § 1.1471-6(f), or under an applicable IGA. A withholding agent is not required to withhold on a withholdable payment to the extent that the withholding agent can reliably associate the payment with documentation to determine the portion of the payment that is allocable to an exempt beneficial owner (in this case, a retirement fund) in accordance with the regulations.
How should an entity seeking the FATCA status of “direct reporting NFFE” (other than a sponsored direct reporting NFFE) register for this status to obtain a GIIN in order to avoid FATCA withholding?
A direct reporting NFFE is eligible to register for this status and when registering should complete an online registration (or, alternatively, submit a paper Form 8957) based on the instructions provided in this FAQ. For registrations occurring in years after 2014, it is anticipated that both the online registration user guide and the Instructions for Form 8957 will be updated to incorporate this information.
In general, for purposes of completing the registration of a direct reporting NFFE, substitute the words “direct reporting NFFE” for the words “financial institution” wherever they appear in the online registration user guide (or in the Instructions for Form 8957). Unless specific instructions for a registration question are described here in this FAQ, please use the generally applicable instructions provided in the online registration user guide (or in the Instructions for Form 8957).
Question 1 – – Select “Single”.
Question 4 – – Select “None of the above”.
Question 6 – – Select “Not applicable”.
Question 7 – – Select “No”. (If using the portal online, selecting “no” will automatically skip Questions 8 and 9.)
Question 8 – – Skip this question (which relates to branches)
Question 9 – – Skip all parts (a) through (c) of this question (which relate to branches).
Question 10 – – Enter the information of the individual who will be responsible for ensuring that the direct reporting NFFE meets its FATCA reporting obligations and will act as a point of contact with the IRS in connection with its status as a direct reporting NFFE.
Part 2 – – It is not necessary for a direct reporting NFFE to complete this section. (If using the portal online, selecting Single in question 1 will automatically skip Part 2.)
Part 3 – – It is not necessary for a direct reporting NFFE to complete this section. (If using the portal online, selecting “Not Applicable” in question 6 will automatically skip Part 3.)
Part 4 – – The individual who completes this part must have the authority to provide the certification.
Direct reporting NFFE QIs/WPs/WTs should renew their agreements through the existing traditional paper process. Instructions can be found at the following link (Question IX), see:Qualified-Intermediary-Frequently-Asked-Questions
How should a sponsor of a sponsored direct reporting NFFE register itself for this status and obtain a GIIN?
A sponsor of a sponsored direct reporting NFFE is a sponsoring entity (see Treas. Reg. § 1.1471-1T(b)(124)) and should complete an online registration (or, alternatively, submit a paper Form 8957) as a sponsoring entity, based on the instructions provided in this FAQ. A sponsoring entity need only complete one registration to act as the sponsor for both sponsored FFIs and sponsored direct reporting NFFEs. For registrations occurring in years after 2014, it is anticipated that both the online registration user guide and the Instructions for Form 8957 will be updated to incorporate this information, including by incorporating the definition of sponsoring entity provided in Treas. Reg. § 1.1471-1T(b)(124).
In general, for purposes of having a sponsor register a sponsored direct reporting NFFE, substitute the words “sponsor of a direct reporting NFFE” for the words “sponsoring entity” wherever they appear in the online registration user guide (or in the Instructions for Form 8957). Unless specific instructions for a registration question are described here in this FAQ, please use the generally applicable instructions provided in the online registration user guide (or in the Instructions for Form 8957).
Question 1 – – Select “Sponsoring Entity”.
Question 7 – – Select “No”. (If using the portal online, selecting “no” will automatically skip Questions 8 and 9)
Question 10 – – Enter the information of the individual who will be responsible for ensuring that the direct reporting NFFE meets its FATCA reporting obligations and who will act as a point of contact with the IRS in connection with its obligations as a sponsoring entity.
Part 2 – – It is not necessary for a sponsor of a direct reporting NFFE to complete this section. (If using the portal online, selecting Sponsoring Entity in question 1 will automatically skip Part 2.)
Part 3 – – It is not necessary for a sponsor of a direct reporting NFFE to complete this section. (If using the portal online, selecting “Not Applicable” in question 6 will automatically skip Part 3.)
Why has my registration been put into “Registration Incomplete”? What can I do?
If your registration has been put into Registration Incomplete status, it is because the IRS has identified an issue with your registration. If you are Registration Incomplete status, please review your registration for any of the following errors and update it accordingly:
The FFI has identified itself as a Qualified Intermediary with a QI-EIN of which the IRS has no record. (If you have QI, WP or WT Agreement signed with the IRS, please contact the Financial Intermediaries Team for further assistance.)
The RO has been identified with initials only and no specific name has been provided.
The RO does not appear to be a natural person.
Notice 2013-43 stated that any registrations submitted prior to January 1, 2014 would be taken out of submit and put into Registration Incomplete status. Thus, if your registration was submitted prior to January 1, 2014, you must re-submit your registration assuming that none of the other abovementioned reasons (1-3) are an issue with the FFI’s registration.
After you have updated your registration, you must resubmit in order for your registration to be processed.
Additional FAQs are available for the FATCA Registration System and the FATCA FFI List.
Practical Compliance Aspects of Exchange of Information, FATCA and GATCA
For in-depth analysis of the practical compliance aspects of financial service business providing for exchange of information of information about foreign residents with their national competent authority or with the IRS (FATCA), see Lexis Guide to FATCA Compliance, 2nd Edition just published!
The LexisNexis® Guide to FATCA Compliance (2nd Edition) comprises 34 Chapters grouped in three parts: compliance program (Chapters 1–4), analysis of FATCA regulations (Chapters 5–16) and analysis of Intergovernmental Agreements (IGAs) and local law compliance challenges (Chapters 17–34), including intergovernmental agreements as well as the OECD’s TRACE initiative for global automatic information exchange protocols and systems. The 34 chapters include many practical examples to assist a compliance officer contextualize the regulations, IGA provisions, and national rules enacted pursuant to an IGA. Chapters include by example an in-depth analysis of the categorization of trusts pursuant to the Regulations and IGAs, operational specificity of the mechanisms of information capture, management and exchange by firms and between countries, insights as to the application of FATCA and the IGAs within new BRIC and European country chapters.
Posted in FATCA | Tagged: FATCA, GIIN, IGA, international tax, IRS | 1 Comment »
IRS’ Frequently Asked Questions (FAQs) – FATCA Registration System
Posted by William Byrnes on January 8, 2014
The IRS has published the following FATCA FAQs about the FATCA Registration Portal and System, including these topics:
FATCA Registration System – Overview
Registration System Resource Materials
General System Questions
FATCA Account Creation and Access
Registration Status and Account Notifications
Expanded Affiliated Groups (EAG)
Global Intermediary Identification Number (GIIN) – Overview
GIIN Format
Q1. What is the FATCA Registration System? An overview of the FATCA Registration System is available, along with other Registration Resources and Support Information, on the FATCA Registration Resources Page.
Q2. What training is available for the Registration System? In addition to these Q&As, the FATCA Registration Online User Guide will provide information on how to answer questions and navigate through the online system. Short “how-to” videos for the Registration system are also available on the FATCA Registration Resources Page.The IRS anticipates adding more items in the near future to aid those registering through the FATCA Registration Website.
Q3. What help will be available for the FATCA Registration System? The FATCA Registration Resources Pagecontains information to get you started, including the FATCA Registration Online User Guide, short “how-to” videos for the Registration system, and other resources.If help is needed prior to logging onto the FATCA registration system, the Registration User Guide will provide information about logging in and navigating through the system. There is also a link “Forgot FATCA ID or Access Code?” on the login page with information on how to obtain assistance with login issues.Once logged on, the FATCA registration system contains help icons (question marks) throughout the registration with information on particular questions or fields. At the top of each page of the FATCA registration system there is a navigation bar with a “get help” option that will provide additional resources and contact information.
Q4. What languages will the registration system be available in? The registration system will be in English only; however only certain special characters will be accepted (~ ! @ # % ^ * ( ) ? , . ).
Q5. Will there be a test environment or a beta version of the FATCA registration system? No, there will not be a test environment or a beta version of the registration system. The registration system is currently open. The FI’s can input their data. On or after January 1, 2014, the FI will need to submit their registration.
Q6. Will the system have certain mandatory fields or will they all be mandatory? Not all fields in the online registration form are mandatory. Fields that are mandatory are marked with an asterisk at the end of the question. Also, depending on how you answer a question, the system will automatically skip some questions as appropriate.
Q7. Will there be an automatic check of legal names against a database to prevent misspellings or to provide consistent formatting? The system will validate that the legal name contains only valid characters, but will not check the legal name against any database for spelling or format issues. Valid characters include lower and upper case letters (a-z, A-Z), numbers (0-9), and the following special characters: blank space, ampersand (&), hyphen (-), forward slash (/), period (.), comma (,), apostrophe (‘), pound sign (#), and percent sign (%). The legal name cannot start with a special character.
Q8. What is the maximum number of characters allowed for name fields? Most name fields allow for up to 40 characters to be input. You will not be able to input more characters than allowed in a particular field. There are specific error messages to guide you when you click on the “Next” or “Save” button in the registration system if there is a problem with the input you provided.
Q9. How should an FI enter the FI legal name in question 2 or the member FI legal name in question 12 (for lead FIs) if the FI legal name is longer than what the system allows, or has characters that the system does not allow? At this time, the FATCA registration system can only capture 40 characters (spaces between names will count toward the character limit). Further, only upper and lower case letters (a-z, A-Z), numbers (0–9) and the following special characters are accepted: blank space, ampersand (&), hyphen (-), forward slash (/), period (.), comma (,), apostrophe (‘), pound sign (#), and percent sign (%). Parentheses and brackets are not accepted at this time. The legal name cannot start with a special character.To the extent that the full legal name can be entered, please do so. If however, the full legal name does not fit, please note the following:
At least the first 10 characters must match the FI’s legal name.
Any legal and numerical designations must be included in the remaining 30 characters.
No abbreviations in the first 10 characters, but otherwise it is okay to abbreviate.
Q10. How can a Financial Institution register an entity in a newly created country? The FATCA registration system includes countries on the ISO 3166 listing, and as new countries are added, the system will be updated to include them. There is also an option to select “other” for the country if the system has not yet added a country to the drop down lists.
Q11. Does the system have the capability to show the questions and responses before the registration is submitted? Can the questions and responses be printed or saved? The registration is separated into four parts. In the online registration system, how each part displays depends upon how the questions are answered; accordingly, the Financial Institution (FI) will only see the parts of the form that are applicable to it. At the end of parts 1 through 3, there is an edit / review function which will display the questions and responses provided. The FI can use the print functionality from its browser to print each of these parts. Once the registration is submitted, there are options on the home page to review each of the applicable parts of the registration. There is also an option for the FI to print, view, and save (in pdf format) the agreement (part 4) of the form.An FI (except Sponsoring Entities) can view or save (in pdf format) its branch table information from the home page.A Lead FI can view or save (in pdf format) its member FI table from the home page.
An FI can edit its registration by selecting the “Registration-Edit/Complete/Submit” option on its home page.
Q12. What is the maximum number of users that can access a FATCA account at one time? Each Financial Institution (FI) will have its own FATCA Account, with a unique FATCA ID. Although the login credentials (FATCA ID and access code) can be shared between the Responsible Officer and up to five (5) points of contact designated on the registration form, only one person can access the account at a time.For Expanded Affiliated Groups, each member FI has its own FATCA ID and access code, so members can log into the system independent of other members of the group. The Lead FI has access to all of the member FI accounts from their home page, and if the Lead FI is accessing a member account, that member will not be able to log in. If a member FI is logged in, the Lead FI will not be able to access that member account until the member logs out; however it will be able to access its own lead account.
Q13. What are the password requirements for FATCA Accounts? When creating a FATCA account, a Single, Lead or Sponsoring Entity Type Financial Institution will create an access code (like a password) to be used with the systemically assigned FATCA ID for all future logins to the account. The access code must be between 8 and 20 characters and include at least one uppercase letter, one lowercase letter, one number, and one of the following special characters ~ ! @ # % ^ * ( ) ? , .For Member type FI’s, the registration system will generate a unique FATCA ID and a temporary access code for each member when the Lead FI creates the member accounts. The Lead FI will provide the login information to each of its member FIs. When each member FI logs into their FATCA account, they will be prompted to select a new access code, following the criteria described in the above paragraph.
Q14. What are challenge questions used for? Each Financial Institution (FI) will select two challenge questions from a list of predefined questions and provide an answer to each. For all FIs except Member Type FIs, this will be done as part of the account creation process. Lead FIs will create all member FI accounts, and the first time the Member FI logs into their FATCA account, they will be prompted to select and answer their challenge questions. Each FATCA account will have two challenge questions and answers provided by the FI.Challenge questions will be used by each FI to reset their own access code if they forget it. Challenge questions and answers can be reviewed and updated at any time by the FI when logged into their account. From the home page, the FI can select the “Challenge Questions – Edit/Review” option and review and make changes as necessary.
Q15. Can a member of an Expanded Affiliated Group (EAG) create their own FATCA account? A Member Financial Institution (FI) cannot create its own FATCA account. The Lead FI will create all their member accounts and provide each member FI with its login credentials. The member will then log into its account and complete its registration.
Q16. What is the time lapse between the creation of the FATCA ID for the Lead FFI and the FATCA IDs for the Member FFIs? Once the Lead FI creates its own FATCA account, and has completed Part 1 of the registration, it will create the FATCA accounts for each member by adding the members in Part 2, question 12 of the online registration. As soon as a member’s information is completed, and the “add another” button is clicked, that member FI will appear in the table below the question with its FATCA ID and temporary access code.
Q17. What type of notifications will the FATCA Registration system provide? The FATCA Registration system will generate automatic e-mail notifications to the Responsible Officer (RO) to check the FATCA account when a financial institution (FI) registration changes between some statuses. There will also be messages posted on the FI’s message board, which it can access on the home page of its FATCA account.
Q18. How can a Financial Institution check the status of its registration? A Financial Institution (FI) can check the status of its FATCA registration by logging into its FATCA account and checking the account status displayed on its home page. The system will also generate automatic e-mail notifications to the Responsible Officer (RO) to check the FATCA account when a Financial Institution (FI) registration changes between some statuses. A list of statuses and their definitions can be found in the appendix of the FATCA Registration Online User Guide.
Q19. Can the Responsible Officer (RO) list more than one e-mail address on the registration system? The RO can only list one e-mail address in question 10 of the registration.
Q20. Can the change of status e-mail notifications go to the Responsible Officer (RO) and the Points of Contact (POCs)? The registration system will send an e-mail only to the Responsible Officer when the registration changes between some statuses. Therefore, the FI should carefully consider which email address is provided in question 10 of the registration.
Q21. If a lead Foreign Financial Institution (FFI) of an Expanded Affiliated Group (EAG) registers and lists each Member on Part 2 of the registration, then would each member of the EAG still need to separately register? Each member financial institution of the EAG will need to complete a registration, once the Lead has created its account. In part 2 of the Lead FI’s registration, the lead FI will add basic identifying information for each member, and the system will create the member FATCA accounts. Each member will then need to log into the system and complete its registration.
Q22. Once the lead Financial Institution (FI) has its FATCA ID, will it be possible for each of the member Expanded Affiliated Group (EAG) entities to log on at the same time to register? Once the Lead adds a member under part 2 of the Lead’s registration, the system will generate a FATCA ID and temporary access code for the member (thus establishing the member’s account). The Lead will give that account information to the member and it can log into its member account. Each FI has its own account, so the Lead and member(s) can all be logged in at the same time to their own accounts. Because the Lead FI has access to member accounts, only one (either the Lead or Member FI) can access the member account at a time.
Q23. How does the lead Financial Institution (FI) access its member FI accounts? Once a lead FI creates its member accounts, it can access the member FI accounts by clicking on the “view member information link” from its homepage, and clicking on the name of the member FI in the table. The Lead FI can access each of its member accounts under its own lead FI account login – it does not need to log into each of the member accounts separately. However, since only one person can access the account at a time, the lead FI will get an error message if it tries to access the member account when the member FI is logged in, and the member FI will not be able to log into its account if the lead FI is accessing it.
Q24. Where does a Financial Institution (FI) send information to have updates made on its registration? Updates cannot be made on paper. Once an account is established, (whether on the paper form 8957 or online), the FI will manage any updates to its registration form and account online. An FI that chooses to initially register on paper will have its logon information sent to it in the mail. The FI will log into the FATCA Registration System, and select the” Registration – Edit/Complete/Submit” option from its home page to edit the registration form data, or choose from other available account options.
Q25. How can the access code for the FATCA account be changed? The financial institution (FI) can change the access code by logging into the FATCA account, and selecting the “Access Code – Change” option from its home page.The FI can also reset its own access code if it forgets it by clicking on the “Forgot FATCA ID or Access Code?” link from the login page, and following the instructions to answer the challenge questions provided during registration.Member financial institutions will also be required to change their initial temporary access code provided by their Lead FI the first time they log into the system.
Q26. How can the Responsible Officer (RO) or Points of Contact (POCs) be changed? An FI can edit its registration by logging into its FATCA account and selecting the “Registration – Edit/Complete/Submit” option from its home page. To change the RO or POCs, the FI would edit Question 10 or 11 of the registration as appropriate, and resubmit the registration.Because the RO and POCs share the login credentials for the FATCA Account, the FI may want to change its access code when its personnel changes. The access code can be changed from the home page by selecting the “Access Code – Change” option.
Q27. Can a Financial Institution (FI) that is limited change to a Participating FFI? Yes, an FI can edit their registration by logging into its FATCA account and selecting the “Registration – Edit/Complete/Submit” option from its home page. The FI would change its classification in question 4, and resubmit its registration.
Q28. How do I get my registration out of registration submitted status? Notice 2013-43 stated that after January 1, 2014 the FI will need to submit a final registration. If an FI submitted a registration prior to this date, it can be changed by the FI. To change the status of your registration from registration submitted, go to your home page. Under Available Account Options: Select “Registration – Edit/complete/Submit.” You will be asked if you want to change your status to “initiated.” Select yes. After January 1, 2014, you may submit your registration as final.
Q29. Why did my registration status change toRegistration Incomplete and how do I submit the registration again? Notice 2013-43 stated that after January 1, 2014 the FI will need to submit a final registration. If an FI submitted a registration prior to this date, the registration status will be systemically updated to Registration Incomplete on December 31, 2013. The registration system will be unavailable during this time.Beginning on January 1, 2014, you can login to your FATCA account, and resubmit your registration by selecting “Registration – Edit/Complete/Submit” under the Available Account Options on your home page. You will be asked if you want to change your status to Initiated. Select yes, and review each page of the registration, making any necessary updates, and clicking the “next” button at the bottom of each page to continue. When you get to Part 4 of the registration, complete the information, and click on the Submit button. Your registration status will then be updated toRegistration Submitted. You can go back at any time to update information.
Q30. What is a GIIN? A GIIN Composition Document is available along with other Registration Resources and Support Information, on the FATCA Registration Resources Page.
Q31. Will Financial Institutions (FIs) and Branches that are limited be issued GIINs? No, FIs and branches that are limited will not be issued GIINs.
Q32. What is the format of the GIIN? The GIIN is a 19-character identification string that is a composite of different identifiers, including the FATCA ID, Financial Institution type, category code and country identifier. For more information see the full description in the GIIN Composition Document.
Q33. Are the period (.) separators in the GIIN required? Yes. The period separators comprise three characters in the 19-character identification number. Please see the GIIN Composition Document for more information.
FATCA Compliance Program and Manual
Fifty contributing authors from the professional and financial industry provide expert analysis within the LexisNexis® Guide to FATCA Compliance (2nd Edition): many perspectives – one voice crafted by the primary author William Byrnes. The second edition has been expanded from 25 to 34 chapters, with 600 pages of regulatory and compliance analysis.
The LexisNexis® Guide to FATCA Compliance (2nd Edition) comprises 34 Chapters grouped in three parts: compliance program (Chapters 1–4), analysis of FATCA regulations (Chapters 5–16) and analysis of FATCA’s application for certain trading partners of the U.S. (Chapters 17–34), including intergovernmental agreements as well as the OECD’s TRACE initiative for global automatic information exchange protocols and systems.
The 34 chapters include many practical examples to assist a compliance officer contextualize the regulations, IGA provisions, and national rules enacted pursuant to an IGA. The chapters include in-depth analysis of such topics as the categorization of trusts pursuant to the Regulations and IGAs, operational specificity of the mechanisms of information capture, management and exchange by firms and between countries, insights as to the application of FATCA and the IGAs within new BRIC and European country chapters.
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Posted in FATCA | Tagged: FAQ, FATCA, Foreign Account Tax Compliance Act, GIIN, Internal Revenue Service, IRS, January 1 2014, Legal name | Leave a Comment »
FATCA FFI List Resources and Support Information Webpage and FFI List FAQs are Now Available
Posted by William Byrnes on December 23, 2013
On December 19, the IRS released FATCA News Issue Number 2013-16 wherein it announced the FATCA FFI List Resources and Support Information Webpage and the FATCA FFI List Frequently Asked Questions (FAQs) have been posted to the FATCA Website.
The IRS’ new FATCA FFI List Resources and Support Information includes the following information:
An FFI may agree to report certain information about its account holders by registering to be FATCA compliant. An FFI that has registered and that has been issued a global intermediary identification number (GIIN) will appear on a published FFI List. The FFI List can be downloaded in its entirety or searched for specific information (FI name, GIIN or country). Search results can also be downloaded. Withholding agents may rely on an FFI’s claim of FATCA status based on checking the payee’s GIIN against the published FFI List. This FFI list search and download tool is scheduled to be available beginning June 2014, and will be updated monthly.
Additional information on FATCA registration is available in the FATCA Registration Overview. More details about the GIIN are available in the GIIN Composition document.
FFI list Search and Download Capabilities
Beginning in June 2014, a search tool, partial list download, and a full downloadable list will be available on IRS.gov to the public. No login or password will be required to search or download the list. The data will be refreshed on the 1st of the month and will only include FIs and branches approved 5 business days prior to the first of the month. The date of the last update to the information will be displayed on the page. Previous months lists will not be available on IRS.gov.
The FFI List search and download tool can be used for looking up individual or groups of FIs and their branches to determine if they are on the list of FATCA compliant FIs. To use the search feature, at least one of the following search fields must be filled in: GIIN, Financial Institution Name, or Country. The results will be displayed on the screen and can be exported in CSV, XML or PDF formats. Search tips will be available on this site.
A complete list of all FATCA compliant FIs and branches will also be available for download in CSV and XML formats. If you plan to import this file into your own database, additional information including the schema, is available on the FFI List Schema and Test Files page.
The IRS FFI List FAQs is available at http://www.irs.gov/Businesses/Corporations/IRS-FFI-List-FAQs
Fifty contributing authors from the professional and financial industry produced LexisNexis® Guide to FATCA Compliance (2nd Edition). The second edition has been expanded from 25 to 34 chapters, with 600 pages of regulatory and compliance analysis.
The previous 25 chapters have been substantially updated, including many more practical examples to assist a compliance officer contextualize the regulations, IGA provisions, and national rules enacted pursuant to an IGA. The nine new chapters include by example an in-depth analysis of the categorization of trusts pursuant to the Regulations and IGAs, operational specificity of the mechanisms of information capture, management and exchange by firms and between countries, insights as to the application of FATCA and the IGAs within new BRIC and European country chapters. Chapter 7 has been drafted for a financial institution’s compliance officer, Chapter 9 for the trust department compliance officer, and Chapter 10 for the insurance firm’s compliance officer. Chapter 7 provides a new section analyzing the compliance risks with the IRS’ recently released draft FFI agreement.
Posted in Compliance, FATCA | Tagged: BRIC, FATCA, Financial institution, Foreign Account Tax Compliance Act, GIIN, Internal Revenue Service, IRS, LexisNexis | Leave a Comment »
IRS’ Announcement for Signing FFI Agreement and Finalizing FATCA Registration
Posted by William Byrnes on December 17, 2013
On Monday December 16, the IRS issued Announcement 2014-1 reminding foreign financial institutions (FFI) that have registered via the FATCA Portal to log back in after January 1, 2014 in order to sign the FFI agreement and finalize the registration process. The IRS and Treasury anticipate that the final FFI agreement will be published prior to January 1, 2014. The latest FFI Agreement draft has been covered previously (choose the FATCA tag on the left menu to read previous analysis).
Any FI submitting its registration information on or after January 1, 2014 may subsequently choose to revoke its status by revisiting its account and deleting its registration (if its GIIN has not yet been issued) or cancelling its registration (if its GIIN has already been issued).
The IRS stated that final qualified intermediary (QI), withholding foreign partnership (WP), and withholding foreign trust (WT) agreements will be published in early 2014. Any FI seeking to renew its status as a QI, WP, or WT should do so during the FATCA registration process.
The IRS also reminded FFIs that verification of a GIIN is not required for payments made prior to January 1, 2015 with respect to any payee that is a reporting Model 1 FI (pursuant to an intergovernmental agreement between its country and the U.S.). The IRS added that while reporting Model 1 FIs will be able to register and obtain GIINs on or after January 1, 2014, they will not need to register or obtain GIINs until on or about December 22, 2014, to ensure inclusion on the IRS FFI list by January 1, 2015.
The FATCA compliance officer responsible for an enterprise with multiple lines of business in multiple jurisdictions is particularly at risk of missing this critical registration deadline and other important compliance milestones, especially in jurisdictions that do not have a Model 1 IGA with the U.S. This LexisNexis® Guide to FATCA Compliance contains three chapters written specifically to guide a financial institution’s lead FATCA compliance officer in designing a plan of internal action within the enterprise, interaction with outside FATCA advisors with a view of best leveraging available resources and budget, and systems management [see Chapters 2, 3 and 4].
Posted in Compliance, FATCA | Tagged: BRIC, FATCA, Financial institution, Foreign Account Tax Compliance Act, GIIN, Internal Revenue Service, IRS | Leave a Comment »