Foreign Account Tax Compliance Act (FATCA)
Are you FATCA Compliant?
In March 2010, the United States of America (US) passed the Foreign Account Tax Compliance Act (FATCA). Among its many requirements, FATCA requires all foreign financial institutions (FIs) around the world to identify and report certain information on customers who are Specified US Persons (whether or not they are the primary account holders) and Recalcitrant Customers. The governments of Jamaica and the US signed an Inter-Governmental Agreement (IGA) which, among other things, provides for Jamaican FIs to transmit the required information to Tax Administration Jamaica (TAJ) which will in turn submit the information received to the US Internal Revenue Service.
Information to be reported to the TAJ includes:
- Name, address, and US tax identification number of each Specified US Person/Recalcitrant Customer;
- Account number;
- Account balance/value as at the end of the calendar year or immediately before closure if the account was closed during the calendar year,
- Gross interest/dividends, and interest and other income credited to the account.
Effective July 1, 2014, to align with the requirements of FATCA and the IGA, we will be making changes to our account opening procedures. Further, we may be required to contact you in order to update your records.
Talk to us today or visit the Internal Revenue Services website at www.irs.gov for more information. You may also read more here.
We continue to enjoy an exceptional relationship with you and thank you for selecting NCB and its subsidiaries as your financial services partner of choice. We hope that together, we can help you to Put Your Best Life Forward.