On April 28, 2022, the Acting Director of the Financial Crimes Enforcement Network (FinCEN) provided the U.S. House of Representatives Committee on Financial Services an update on a variety of issues including the new U.S. beneficial owner registry. U.S. Corporate Transparency Act The U.S. Corporate Transparency Act (“CTA”) was enacted on January 1, 2021. On December 8, 2021, the Financial Crimes Enforcement Network (FinCEN) issued proposed regulations. FinCEN received over

Certain entities may register in the IRS FATCA portal and, upon registration approval, receive a Global Intermediary Identification Number (GIIN). For some entities, the FATCA portal registration process involves the entity entering into an FFI Agreement with the IRS and submitting certain certifications. If the entity fails to submit these certifications, their IRS FATCA account may turn from Approved to Terminated. But you can reverse this status! IRS FATCA Certifications

In many jurisdictions such as the U.S., there are laws dictating when a financial institution must consider a customer’s financial account to be dormant. Each state in the U.S. has laws that govern when accounts are considered inactive and/or abandoned. However, what if you are applying FATCA in a jurisdiction without such clear laws or regulations? FATCA Regulations FATCA regulations provide tiered guidance in defining a dormant account for accounts that are not a cash value

Very surprising admission by the IRS Commissioner. Written Testimony of Charles P. Rettig, Commissioner Internal Revenue Service before the House Ways and Means Committee, Subcommittee on Oversight on the Filing Season and IRS Operations (March 17, 2022) "Because of our current funding and staffing limitations across our enforcement functions, we are forced to make difficult decisions regarding priorities, the types of enforcement actions we employ, and the service we offer.

On March 23, 2022, the U.S. Internal Revenue Service (IRS) posted a new question and answer on its FATCA – FAQs General site : Q22. How do I submit my FATCA certification if the registration status has been changed to under review with a message indicating “For more information contact the Treasury Department Office of Foreign Asset and Control (OFAC)”? If you have a FATCA certification due, and your registration status has been changed to under review with a message informin

The Bahamas Competent Authority announced the FATCA and Common Reporting Standard (CRS) portal will open for FATCA and CRS registration and submissions on Monday, July 18, 2022 at 9 AM EDT. The portal will close on Friday, August 26, 2022 at 5PM EDT. Financial Institutions (FIs) with FATCA and CRS reporting obligations that miss the August 26, 2022 portal deadline will need to contact the Bahamas Competent Authority at helpdesk@taxreporting.finance.gov.bs or information@tax

On February 23, 2022, the Inland Revenue Authority of Singapore (IRAS) updated its IRAS FAQs on the Foreign Account Tax Compliance Act (FATCA). Specifically, IRAS updated FAQ B.7 dealing with reporting tax identification numbers (TINs). The FAQ is: "How should a Reporting SGFI report TINs of Foreign Entity Account Holders (where Entity Account Holder is not a U.S. Person such as in the case of a Passive NFFE)? We have confirmed that the Entity Account Holder Type is either FA

On February 11, 2022, the British Virgin Islands International Tax Authority (BVI ITA) announced it will be establishing a registration fee of US$185.00 effective September 1, 2022. The fee will be charged for each entity which is required under BVI law to register in the BVI Financial Account Reporting System (BVIFARS). Entities register in BVIFARS to comply with BVI reporting under the Common Reporting Standard (CRS), Foreign Account Tax Compliance Act (FATCA) and Country-b

CRS Reportable Jurisdictions On January 31, 2022, the Cayman Islands published an updated list of Common Reporting Standard (CRS) Reportable Jurisdictions . Jamaica, Kenya and Morocco have been added as CRS Reportable Jurisdictions for Y2021 reporting. Kuwait has been removed from the list of CRS Reportable Jurisdictions. Financial Institution Deregistration The functionality of the Cayman Islands Department for International Tax Cooperation portal (DITC Portal) has increased

The U.S. Corporate Transparency Act (“CTA”) was enacted on January 1, 2021. On December 8, 2021, the Financial Crimes Enforcement Network (FinCEN) issued proposed regulations. Public comments on these proposed regulations are due February 6, 2022. Until FinCEN issues final regulations, we do not know with certainty the specific requirements. However, it is useful to review some of the basic components included in the proposed regulations to ensure you are prepared. Who Must F

The Isle of Man Income Tax Division published updated versions of FATCA and Common Reporting Standard (CRS) guidance notes. The updated documents may be found by clicking on the below links: The International Tax Compliance (United States of America) Regulations 2014, as amended Application of FATCA for Isle of Man Financial Institutions - UPDATED 27 January 2022 - Guidance Note GN 55 The Common Reporting Standard Isle of Man Regulations, Application of the CRS for Isle of M

On January 27, 2022, Guernsey Revenue Service announced an extension for reporting the failure to obtain a valid self-certification. The first reporting date has been extended from January 31, 2022 to March 31, 2022 for both new and pre-existing accounts. Self-Reporting Failed Self-Certs If a Financial Institution (FI) has not been able to validate a self-certification for a New Account within 90-days of the account being opened, the FI must report the account to the Guernse

On December 24, 2021, Guernsey Revenue Service issued a bulletin discussing mandatory FATCA and Common Reporting Standard (CRS) registration for all Guernsey financial institutions. The Guernsey Revenue Service makes clear that effective January 1, 2022, FATCA and CRS registration in IGOR is mandatory even if the financial institution does not have a reporting obligation . The deadline for registration is February 28, 2022 . Thereafter, a Non-Reporting FI (NRFI) will have the

On December 17, 2021, Guernsey Revenue Service issued a bulletin discussing compliance measures it may take against a Financial Institution (FI) with potential significant failings in meeting its FATCA and/or CRS obligations. Relevant Review Factors Guernsey provided the below list of nine factors it will take into consideration in determining if it will implement compliance measures against an FI: “whether the non-compliance issue is of a significant seriousness and risk to

Singapore recently increased the penalties for both FATCA and Common Reporting Standard (CRS) non-registration and non-filing offenses. As of November 16, 2021, the penalties are SGD$5000 (approximately US$3647) upon conviction, and a further fine of SGD$100 (approximately US$73) per day for a continuing offense. FI Obligations Singapore Financial Institutions (FIs) have the following obligations under FATCA and CRS: Register for FATCA and CRS with IRAS. Perform FATCA and CRS

The Bahamas Competent Authority announced the FATCA and Common Reporting Standard (CRS) portal is now open for FATCA and CRS registration and submissions. Additionally, Financial Institutions (FIs) are able to submit corrections to previous filings for non-U.S. tax identification numbers (TINs). To access the portal, click here . The portal will close on Friday, January 14, 2022 at 5 PM EST. After the portal closes, FIs with FATCA or CRS reporting obligations should contact t

The IRS announced the Public Key for FATCA filing will expire on December 3, 2021. For those financial institutions (FIs) who submit their FATCA reporting directly to the U.S. Internal Revenue Service (IRS), it is critical to determine if you have downloaded the IRS’ new public key and checked to see if your digital certificate is current. What Is IDES? Certain FIs transmit data directly to the IRS through the International Data Exchange Service (IDES) . Depending on the amou