This section gives you quick and easy access to the answers to the questions we're asked most frequently. If you don't find your question here please use the Ask the Banker or the email form on the Contact Us page and we will be happy to answer your question.
Is FATCA applicable to individuals or business customers?
Both. FATCA is applicable to both individuals and business customers.
How will FATCA work?
FFIs will be required to register with the US Internal Revenue Service (IRS) and will be assigned a Global Intermediary Identification Number (GIIN). FFIs will be required to submit information on persons with US indicia who hold accounts with them or own over 10 per cent (10%) of an entity that has an account with the FFI, above a stipulated threshold. It is important to note that this will vary for individuals and companies.
How will FATCA impact our customers?
All customers will be subject to an electronic perusal of their account information. This perusal seeks to determine which accounts have US indicia. US “indicia” include: whether a customer has US citizenship or permanent residency. It also includes the use of US address; Post Office Boxes and US telephone numbers. If these basic levels of indicia are identified, customers will be required to disclose their legal name, address, and US Tax Information Number (TIN). This information, as well as the account number, the account balance; and the gross receipts and gross withdrawals or payments from the account will be sent to the IRS. FATCA is unlikely to impact the vast majority of customers.
Existing Customers
Customers holding accounts which predate the implementation date will be required to update their account information and as per regulations if the account exhibits US indicia, the customer may be asked to provide additional info as a US person or to prove that they are not a US person.
Impact on New Customers
Changes in onboarding procedures will impact new customers as additional information may be requested from new applicants to determine whether they are US persons.
What are the consequences to customers for not disclosing the information required by FATCA?
Customers who do not disclose the requisite information to an FFI will have their accounts flagged as non-compliant. The FFI will be required to eventually close the account if the information is not received within a specified period of time. Until the closure of the account, a 30% levy will be applied to any payment of interest, rents, royalties, salaries, wages, annuities, licensing fees, income, and profits derived from sources within the US.
I qualify as a US person. How will FATCA apply to me?
If you qualify as a U.S. Person based on the information outlined in question #2, you may be required to submit further information to your Financial Institution. Customers are also advised to seek further advice from a tax professional.
Do FATCA regulations apply to joint accounts?
If one of the accountholders qualifies as a U.S person, and the account balance is above the reporting threshold- FATCA requirements are that the account should be reported. Customers are also advised to seek further advice from a tax professional.
Can my financial institution provide tax related advise?
Your financial institution can only provide general FATCA information, however customers are advised to see tax advice from a relevant tax professional.
Are all financial institutions complying with FATCA?
Financial institutions across the globe in many jurisdictions have signed agreements to comply and many more intend to sign. There are exceptions however, with some financial institutions opting to adopt a different approach to FATCA.
Is customer consent required prior to sharing information?
Once the financial institution operates in a country that has signed an inter-governmental agreement (IGA) with the US, the laws will be amended to facilitate FATCA reporting by financial institutions. The ECCU is currently negotiating IGAs for member countries; and working on uniform legislation to facilitate FATCA compliance.
Is more detailed information on FATCA available online?
Yes. For further information on FATCA, please visit: https://www.irs.gov/FATCA,