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Fatca. Foreign Account Tax Compliance Act

Foreign Account Tax Compliance Act

What is FATCA? - Foreign Account Tax Compliance Act.

FATCA is a series of regulations passed by the US pertaining to the fulfilment of fiscal obligations for accounts held abroad.

Its fundamental objective is to identify any American citizens with investments held in foreign financial entities. On the basis of the International Agreement signed by Spain and the US, it means that financial entities in Spain must classify affected customers and report their account details to the Tax Agency.

Which customers are affected by the FACTA identification requirement? .

It affects all customers , private individuals and legal entities, although the Authorities will only be informed about those who, following the identification process, are found to fulfil the following criteria:

  • Private individuals who reside in or are citizens of the United States or its commonwealth territories (*).
  • Entities that have been constituted in the United States or its commonwealth territories (*).
  • Entities that have not been constituted in the United States but which have US controlling figures.
  • Financial Institutions that have not adhered to FATCA.
  • Customers for whom the FATCA identification process could not be concluded since they did not respond to the requirements of the Entity.
(*) Puerto Rico, American Samoa, North Mariana Islands, Guam, and the US Virgin Islands.

Which legislation is applicable to FATCA?.

Agreement signed by Spain and the US to improve international fiscal compliance and the implementation of the Foreign Account Tax Compliance Act - FATCA, signed on 14 May 2013 ( BOE of 1 July 2014).

In addition, Order HAP/1136/2014 was approved on 30 June 2014, regulating certain matters related with reporting obligations and due diligence.

Does FATCA alter the relationship between Grupo Cooperativo Cajamar and its customers?.

Not at all. The purpose of FATCA is to provide the Authorities with details of the accounts held by reportable customers.

Grupo Cooperativo Cajamar will continue working with customers that fulfil FATCA, as it has been doing up until now. The portfolio of products available will not be altered by FATCA.

How can we help?.

The procedure developed by Grupo Cooperativo Cajamar provides the coverage required in relation to the fiscal obligations of its customers arising as a result of FATCA regulations.

This proactive approach to identification and management avoids the need for customers to be reported unnecessarily.