FATCA Requirements and Compliance 

Foreign financial institutions (“FFIs”) must meet FATCA requirements to:

  • Undertake account holder identification and due diligence procedures.
  • Report annually to the IRS on its account holders who are US persons or foreign entities with substantial US ownership.

If foreign financial institutions do not comply, they will be subject to 30% withholding tax on any payments of US source income, as well as gross proceeds from the sale of securities that generate US source income.

CRS Requirements and Compliance 

FATCA has driven other information reporting regimes, the most notable being the OECD Common Reporting Standards (CRS). The main aim of CRS is to find and report the data of any taxpayer back to their country of residence.

  • We can assess whether your account or structure is subject to CRS reporting obligations and if so, the steps you should take in order to be compliant.
  • CRS compliance is complex, and various views are possible in relation to an account or structure. In the event a bank or financial intermediary has a different view about how you are affected, we can discuss your reporting obligations with them.
  • We can also advise on how your reporting obligations may change if you move countries or your structure is modified or restructured. ​

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