Frequently Asked Questions - Foreign Account Tax Compliance Act
Standard Chartered (the Bank) is committed to implementing Foreign Account Tax Compliance Act (FATCA) and increasing awareness of the regulation to the Bank’s clients.
Here are some general FAQs to help you better understand FATCA and its potential impact on your banking experience:
- What is FATCA?show/hide
FATCA is United States (US) legislation aimed at preventing tax evasion by US Persons and companies through the use of overseas accounts, and improving tax compliance between US and financial institutions/jurisdictions that have agreed to adopt FATCA. It came into effect on 01 July 2014.
- How did FATCA come about?show/hide
Arising from concerns of tax evasion by US Persons, US congress enacted FATCA in 2010 to target non-compliance by US taxpayers using foreign accounts.
- Is the Bank participating in FATCA?show/hide
The Bank is participating in FATCA and has registered subsidiaries of Standard Chartered that meet the definition of a Foreign Financial Institution (FFI) with the United States (US) Internal Revenue Service (IRS). It will carry out the due diligence, reporting and withholding tax requirements of FATCA in accordance with any relevant Intergovernmental Agreement (IGA) and local legislation.
- Will the Bank be reporting your information to the United States Internal Revenue Service?show/hide
If you are a United States (US) Person, an entity incorporated in the US, or a US beneficial owner of certain categories of entities (as defined in the FATCA regulations), then the Bank may be obligated to report, on an annual basis, information regarding financial accounts held by you to the either the US tax authority, the Internal Revenue Service (IRS), or a local tax authority in accordance with Intergovernmental Agreement (IGA) that has been entered into between the US and the country’s governing authority.
- Will the Bank be withholding tax on any of your US source payments?show/hide
The Bank is obligated to withhold tax on United States (US) source payments to Foreign Financial Institutions (FFIs) that are not participating in FATCA (non-participating FFIs) and on payments to clients who do not provide the required documentation (recalcitrant account holders) in accordance with the FATCA regulations from 01 July 2014.
- Will the Bank still require documentation from you for FATCA if you do not have any US connections?show/hide
As an individual client, there are occasions where the Bank may require from you US tax forms even if you are not a US Person. It may be that there is some information in the documentation that indicates US status and therefore further due diligence is required.
Please note that the Bank will require US tax forms from all entity clients. The form certifies whether or not, you or your business, has any US tax reporting responsibilities. If this tax information is not received from you, please note that the Bank may be required to withhold tax on certain US source payments.
- When did FATCA come into effect?show/hide
FATCA came into effect on 01 July 2014.
- Where can more information on FATCA be found?show/hide
You can find out more about the regulatory obligations related to FATCA on the United States (US) Internal Revenue (IRS) FATCA webpage.