The Foreign Account Tax Compliance Act (FATCA), which was passed as part of the HIRE Act, generally requires that Foreign Financial Institutions (FFI) and certain other non-financial foreign entities report on the foreign assets held by their U.S. account holders or be subject to withholding on withholdable payments.
HIRE Act also contained legislation requiring U.S. persons to report, depending on the value, their foreign financial accounts and foreign assets. For more information, please click here.
You may access the required FATCA documents using the links to the right.
Once FATCA forms are completed, please print, sign and then send the completed document to your PBSL client relations team.
Frequently Asked Questions
The United States Government enacted The Foreign Account Tax Compliance Act (FATCA) on March 18, 2010; effective January 1, 2014.
FFIs were required to register with the US Internal Revenue Service (IRS) and were assigned a Global Intermediary Identification Number (GIIN). FFIs are required to submit information on persons with US indicia who hold accounts with them or own over 10% of an entity that has an account with the FFI, above a stipulated threshold.
Foreign Financial Institutions (FFI) are institutions that:
- accept deposits as a regular business function
- hold financial assets for the account of others as a substantial portion of its business
- are engaged in the business of investing
- are involved in reinvesting, or trading in securities, partnership interests, commodities, or any interest in such securities, partnership interests, or commodities
PROVEN Bank (Saint Lucia) Limited is considered an FFI.
The term “US person” is defined as:
- a U.S. citizen (including dual citizens) even if residing outside of the US
- a US passport holder
- a person born in the US unless renounced citizenship
- a U.S. resident alien for tax purposes (green card holders)
- entities (partnerships, corporations, trusts, etc.) where one or more United States persons have control or over 10% shareholding
I am a US person and I am unsure how to proceed.
US persons are required to complete an IRS W series form. Customers are advised to seek further advice from a tax professional, if they are unsure as to which document is applicable.
All PROVEN clients are required to submit an IRS W series form, the only exception to this relates to individual accounts where there is no US indicia.
The currency of the account does not determine whether the information is reported. FATCA requires information to be reported on accounts held by U.S. Persons who meet one or more of the criteria identified by the IRS.
FATCA is applicable to both individuals and business customers.
In the instance where a joint account is held by a US person and a non-US person, this account is categorized as US and will be subject to FATCA.
PROVEN’s actions as they relate to FATCA, will be in strict compliance with the local regulations and legal framework of the countries in which we operate.
Accounts will be automatically reported once they meet one or more of the criteria identified by the IRS.
Customers who do not disclose the requisite information to an FFI will have their accounts flagged as non-compliant to the IRS/local tax authority. The FFI will be required to eventually close the account if the information is not received within a specified period of time.
Your financial institution can provide general FATCA information, however, customers are advised to seek tax advice from a relevant tax professional, where more in-depth advice is required.
Yes, in some instances there is a requirement to periodically complete and submit a FATCA form, given that generally W-8BEN and W-8BEN-E forms remain valid for a period starting on the date the form is signed and ending on the last day of the third succeeding calendar year. For example, a W-8BEN form signed on September 30, 2014, remains valid through December 31, 2017. In addition, changes in circumstances which makes the information previously submitted incorrect, would also require an updated FATCA form to be submitted.