FATCA

 

FATCA (Foreign Account Compliance Act) is a US regulation aiming to fight tax avoidance by US taxpayers who hold financial assets outside the United States. This regulation came into force on July, 1st, 2014.

Originally FATCA was a unilateral US regulation. The signing of intergovernmental agreements between the United States and the so-called "partner" countries is changing the rules to a multilateral initiative regarding an automatic exchange of tax information. These agreements (called "IGA" for Intergovernment Agreements) provide a legal framework for financial institutions to implement FATCA in their jurisdiction. Belgium signed the inter-governmental on April 23, 2014. France has signed the intergovernmental agreement on 14 November 2013 and encourages all French banks to comply with this regulation.

Dexia's position and status

Dexia will see to it that all of its subsidiaries and affiliates, (when Dexia holds more than 50% of the capital), are in compliance with the FATCA rules. Some of the Dexia entities are not in the scope of FATCA and are not subject to registration. Other entities have registered with the IRS. Dexia Crédit Local, lead the FATCA entuty of the Group, has the status of "Registered Deemed Compliant" and GIIN ZC32QB.00000.LE.250.

What is the consequence for our clients and counterparties?

Effective 1 July 2014, Dexia has established procedures to identify customers and American counterparts.

Upon indications of the client being a US citizen or resident (address, phone number, place of birth, nationality, permanent transfer of funds to a potentially US person), customers will be contacted to complete their file and validate their FATCA (American taxpayer or not) status and in some cases (passive entities) they will be asked whether they have a significant shareholder or authorized representative who is a U.S. taxpayer.

Financial counterparties - located in a country that has not signed an intergovernmental agreement - or which was not registered with the IRS will be asked to confirm their compliance with the FATCA rules. Unanswered, financial institutions could suffer FATCA withholding of 30% on U.S. source money flows. 

  • Useful link : site de l'IRS