Foreign Account Tax Compliance Act (FATCA)

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The United States (U.S.)  Foreign Account Tax Compliance Act (FATCA) is rapidly becoming the global model for combating offshore tax evasion and promoting transparency.

FATCA, enacted in the U.S. in 2010, seeks to obtain information on accounts held by U.S. taxpayers in other countries.  It requires U.S. financial institutions to withhold a portion of payments made to foreign financial institutions (FFIs) that do not agree to identify and report information on U.S. account holders.  FFIs have the option of entering into agreements directly with the U.S. Inland Revenue Service (IRS), or through one of two alternative Model Intergovernmental Agreements (IGAs) signed by their home country.

Republic Bank Limited has entered into a special agreement (“FFI Agreement”) with the IRS, effective July 1, 2014.

What will be required of Republic Bank Limited?
  • Undertake certain identification and due diligence procedures involving our new customers, commencing July 1, 2014;
  • Report annually to the IRS,  information on customers who are U.S. persons or foreign entities with substantial U.S. ownership, commencing March 31, 2015; an
  • *Close accounts of certain customers who do not wish to cooperate with the new FATCA requirements e.g. (a) non-participating financial institutions or (b) customers who fail to provide sufficient information to determine whether or not they are a U.S. person, commencing July 1, 2014.

Republic Bank intends to meet all obligations imposed under FATCA in accordance with the FFI Agreement, local banking and tax regulations.  Republic remains committed to keeping customers’ personal information accurate, confidential, secure and private and as such, our response to FATCA will be held to our highest standards of compliance with local privacy laws and our firm commitment to exceptional customer service.

Whilst we expect that FATCA will have no impact on a vast majority of our customers, we have identified specific customers who may be impacted by FATCA and will seek to ensure that these customers understand the impact to their accounts and that they comply with the new requirements.

*If there is a Model 1 IGA in effect, Republic Bank will report these customers annually to the local tax authority.

What customers are affected?
  • Local and other non U.S. financial institutions (FFIs)
  • US Persons

What is a FFI?

Broadly speaking, it is any financial institution which is a non U.S. entity that:

  • Accepts deposits in the course of a banking or similar business;
  • Holds financial assets for the account of others as a substantial part of its business;
  • Is engaged primarily in business of investing, reinvesting or trading in securities; and
  • Is an insurance company (or the holding company of an insurance company) that issues or makes payments with respect to a financial account.
Entity types that are covered are: For this purpose, a non- U.S. entity is any entity that is not –
  • Banks
  • Broker dealers
  • Asset managers and investment funds
  • Insurance companies other than pure property and casualty (general insurance) or pure term life entities
  • Trust companies
  • Other financial intermediaries (such as custodians and related service providers)
  • Credit unions and cooperatives
  • a partnership, corporation, trust incorporated or created under U.S. law
  • a non U.S. incorporated entity having shareholding of 10% or more or ownership held by -
    • An Individual who was born in the U.S. or is an U.S. citizen or an U.S. resident (including green card holder) or has an U.S. address or U.S. mailing address or U.S. in care of or hold mail as a sole address
    • An U.S. incorporated entity as above described
Who is a U.S. Person for FATCA purposes?
A U.S. person is:
  • a citizen or resident of the United States (including a green card holder).
  • a partnership, corporation, estate, trust incorporated or created under U.S. law (U.S. incorporated entity)
  • a non U.S. incorporated entity having shareholding of 10% or more or ownership held by -
    • An Individual who was born in the U.S. or is an U.S. citizen or an U.S. resident (including green card holder) or has an U.S. address or U.S. mailing address or U.S. in care of or hold mail as a sole address
    • An U.S. incorporated entity as above described
How would you know if you are a U.S. Person?
There are specific indicators that determine whether you are a U.S. Person, these are:
  • US resident or Citizen
  • US Place of birth
  • US home or mailing address
  • Only address is a US PO Box, c/o or hold mail address
  • Power of Attorney or signing authority having US address
  • A US telephone number
  • Standing order to transfer funds to an account in the U.S.
If you are a FFI, you will be required to:
  • Register with the IRS and or enter into a FFI Agreement with the IRS before April 25, 2014 as a participating FFI or such other FATCA registered status if the territory in which you are registered, has not entered into an IGA with the U.S. Government.
  • Obtain an IRS issued Global Intermediary Identification Number (GIIN)
  • Submit a valid and completed W-8BENE Tax Form and include GIIN, as supporting documentary evidence that you are a participating FFI or either an exempt or deemed- or registered-compliant FFI under FATCA.
  • Submit completed and signed relevant RBL FATCA Forms.
Additional Requirements Form Needed (in addition to the relevant RBL FATCA Forms) Download PDF

If you are an individual who is a U.S. person or a U.S. incorporated entity, you will be required to:

Submit a valid and completed W-9 Tax Form

 W-9 Tax Form

 If you are an individual who is  not a U.S. Person but have any of the specific indicators above described, you will be required to:

Submit a valid and completed W-8BEN Tax Form as supporting documentary evidence.

 W-8BEN Tax Form

If you are an entity that is neither a FFI nor a U.S. incorporated entity, but have any of the specific indicators above described or U.S. substantial shareholding, you will be required to*

Submit a valid and completed W-8BENE Tax Form as supporting documentary evidence

 W-8BENE Tax Form

*Please note that this is only applicable to pre-existing customers, all new entity customers will be required to complete a W-8BENE Tax Form.

For your ease of reference, we have uploaded on to the Bank’s website (republicbarbados.com) the various documents and Forms that would assist you:

  1. FAQs
  2. Form W9
  3. Form W-8BEN
  4. Form W-8BEN-E
  5. RBL FATCA Forms 
  1. Guidance on Supporting Documents Required for specific indicators
  2. Other Supporting Documents

Detailed instructions on how to complete the IRS tax forms can be found on the IRS website http://www.irs.gov/FATCA

You must submit the aforementioned documents to your branch of Republic Bank  in an envelope clearly labelled “FATCA Documents”  by appointment only by the date indicated in the direct correspondence sent to you.   Forms are available for completion at the Branch.

What will happen if you do not comply?

If for some reason you are unable to comply with the requests for information we may have to bring to an end our banking relationship with you.

In light of the aforementioned, we urge you to comply with these requests.   We also encourage you to seek advice from an independent tax advisor should you need assistance in understanding the scope of these new reporting requirements, and the consequences of non-compliance.

For updates and further information on FATCA, please visit the IRS FATCA page at www.irs.gov/FATCA

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