FATCA Law

What is FATCA?

Foreign Account Tax Compliance Act is a law passed by US Congress on March 18th 2010 in order to take decisive measures to avoid tax evasion by US citizens or residents and improve the fulfilment of tax obligations of taxpayers.

This Law grants the Internal Revenue Service (IRS) new tools and powers in terms of extraterritorial tax control.

In accordance with this Law, the Financial Foreign Institutions (FFI) are forced to sign an agreement with the IRS by which they undertake to communicate them certain obligations related to their clients with US nationality or residency.

If a FFI does not sign this agreement, their clients will be subject to withholding of 30% of all interests, dividends, security sales and other income coming from the US, no matter if they were paid to US, to dependent territories or to non-US citizens or residents.

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Which are FATCA’s requirements?

FATCA requires financial institutions all over the world to fulfil a series of requirements:

• Identify and obtain information about the US Persons (legal or natural person) that have assets outside USA.
• Withhold, if applies, 30% in certain payments coming from the USA (mainly interests and dividends) made to accounts whose holders don’t comply with FATCA.
• Report the aforementioned account holders’ information to the IRS.

This information will include, for example:

• Personal information: name, address and US tax ID (US TIN).
• Account information: account number, balances and payments made or charged.

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What is MoraBanc’s commitment?

MoraBanc and its subsidiary companies commit to collaborate in order to guarantee the fulfilment of international tax obligations.

To that end, MoraBanc has implemented the necessary changes in different areas to ensure fulfilment of the FATCA law requirements.

In this regards, all Grup MoraBanc entities that were affected by FATCA Law have registered in the IRS website and have obtained their relevant ID number (GIIN – Global Intermediary Identification Number).

MoraBanc Grup S.A.’s GIIN is B6R34I.00000.LE.020.

In order to find out the GIIN of any of the other MoraBanc entities, you can access the IRS website through this link: https://apps.irs.gov/app/fatcaFfiList/flu.jsf

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Relevant information about FATCA

MoraBanc will not provide any tax advice, so we recommend our clients to resort to independent advisors if they need counselling about FATCA.

MoraBanc and its subsidiaries do not guarantee that the information or any other content in their website about FATCA is exact or complete, and take no responsibility for any mistake, omission or opinion expressed in this website content.

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