FATCA Registration System upgrade

News

FATCA Registration System upgrade

26 July 2018

Operational Tax News

According to the alert issued by the IRS on 19 July 2018, the FATCA Registration System will be updated to include new features and modify some of existing ones. The following items have been added:

  • New FATCA classification choices: a new range of statuses has been added and all entities are advised to update their FATCA classification. The update can be done through the selection of the Certification of Pre-existing accounts (COPA) or Periodic Certification link on the home-page. In case the update of the status is not done, the entity’s COPA and periodic certification statuses will become overdue. The registration system will suggest the certification(s) for an entity based on its FATCA classification in question 4 of the registration system. Therefore, even entities that do not have a certification requirement (for example, certain Reporting Model 1 IGA FIs) should update their FATCA classification to avoid inapplicable certification-related notices in the future.
  • Certification of Pre-existing accounts (COPA): this certification will be available on the home page for entities in Approved Status. From the link on the home page, the Responsible Officer (RO) will need to answer qualifier questions and from there, the RO may be required to complete certification questions specific to the entity classification.
  • Periodic Certification: certain entities are required to submit a periodic certification. Similar to COPA, entities in Approved Status will need to answer qualifier questions and depending on the determination, complete certification questions specific to the entity classification.

The IRS alert also includes a summary of the updated FATCA classifications and whether those classifications are required to complete COPA and periodic certifications, as shown below:

Financial Institution’s FATCA Classification in its Country/Jurisdiction of Tax Residence Certification Required?
  COPA Periodic
Participating FFI, including a Reporting Financial Institution under a Model 2 IGA Yes Yes
Registered Deemed-Compliant FFI that is a Local FFI Yes Yes
Registered Deemed-Compliant FFI that is a Non-Reporting Member of a PFFI Group No Yes
Registered Deemed-Compliant FFI that is a Qualified Collective Investment Vehicle No Yes
Registered Deemed-Compliant FFI that is a Qualified Credit Card Issuer or Servicer No Yes
Registered Deemed-Compliant FFI that is a Restricted Fund Yes Yes
Reporting Financial Institution under a Model 1 IGA No, except on behalf of branches operating outside of Model 1 jurisdictions (other than related branches) No, except on behalf of branches operating outside of Model 1 jurisdictions (other than related branches)
Direct Reporting NFFE No Yes
Sponsoring Entity of Sponsored Direct Reporting NFFEs  No Yes
Sponsoring Entity of Sponsored FFIs Yes Yes
Sponsoring Entity of Sponsored FFIs and Sponsored Direct Reporting NFFEs Yes, on behalf of Sponsored FFIs only Yes
Trustee of a Trustee-Documented Trust  No Yes
U.S. Financial Institution No No


Do not hesitate to contact us should you have any question on the above.

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