ME PoV Spring 2014 issue
Countdown to FATCA
The real challenges for senior management start now
By April 25, 2014, financial institutions across the Middle East will need to have entered into an agreement with the U.S. authorities (Internal Revenue Service or IRS) to comply with specific requirements set forth in the FATCA (Foreign Account Tax Compliance Act) regulations so as to avoid being subject to the penal 30 percent withholding on certain U.S.-sourced payments. One of these requirements is that each Foreign Financial Institution (FFI) will need to adopt a FATCA governance program and appoint a Responsible Officer who will take personal responsibility for FATCA compliance on its behalf. Non-compliance with FATCA could leave organizations and senior personnel open to significant financial and personal penalties. Appropriate action should be taken now.