• Marco Zawar MBA/LLM (Tax)

IRS releases new procedures to identify noncompliants with FATCA Certification requirements

On 7 April the LB&I’s Foreign Payment Practice (FPP) has created procedures allowing to identify noncompliance with the Responsible Officers (RO’s) obligation to submit the certifications related to the Foreign Account Tax Compliance Act (FATCA) and the conditions when an event of default (EOD) occurs

The document describes the necessary actions to be taken by the RO including the timelines to remediate the failure to comply when IRS submits an EOD notification.

FPP stated, that Financial Institutions FATCA status will be terminated due to the lack of response or actions taken to fulfil the Certification requirements after the due date mentioned in the EOD notification.

To avoid a termination Financial Institutions are required to build robust compliance frameworks and procedures to ensure the on-time transmission of the relevant FATCA certificates through the RO and to have the right processes in place, in case an EOD get raised by the IRS.

About the Author

Marco is a certified Banker, holder of a degree as MBA (finance and accounting) and LLM (international business and tax law) providing 30+ years of working experiences as internal auditor, business consultant, and project manager achieved within Commercial Banking Institutions, Private Banking Institutions, Wealth Management Organisations and Financial Service Provider located in Europe and the APAC Region.

During his career Marco provided advisory services on

  • international tax transparency initiatives - AEoI, FATCA, EU-DAC6, OECD-CRS - to meet financial institutions AML/KYC, Customer due diligence, tax reporting and disclosure obligations;

  • the implementation of U.S Qualified intermediary regime (QI) and U.S 1099 tax reporting requirements;

  • the institution of investment compliance frameworks and policies supporting the monitoring of regulatory, contractual and bank internal investment restriction;

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