Foreign Account Tax Compliance Act (FATCA)
The Foreign Account Tax Compliance Act (FATCA) is US legislation designed to improve tax compliance by US persons, both individuals and entities, who hold financial assets and accounts outside of the US, either directly or indirectly through financial institutions, entities or other structures. The income from such assets may be subject to US taxation and as of 1 July 2014, FATCA requires financial institutions to identify and subsequently report the accounts of US persons.
FATCA is now a global issue with over 100 countries (including Bahrain, Saudi Arabia, Kuwait, UAE and Qatar) having entered into agreements in substance Inter Governmental Agreements (IGA’s) with the US to implement FATCA into local law.
Gulf One Investment Bank
Gulf One Investment Bank B.S.C. © (Gulf One) is the Lead Entity of the Expanded Affiliated Group which includes its subsidiaries and associates and maintains a Registered Deemed-Complaint Financial Institution (including a Reporting Financial Institution under a Model 1 IGA) status for FATCA purposes since Bahrain has committed to an IGA in substance.
GINN Number Lead Entity: 6U5KMP.00000.LE.048.
Gulf One Investment Bank also serves as the Sponsoring Entity for certain associates and maintains a Registered Deemed-Complaint Financial Institution (including a Reporting Financial Institution under a Model 1 IGA) status for FATCA purposes since Bahrain has committed to an IGA in substance.
GINN Number Sponsoring Entity: Y2YLAP.00000.SP.048.
For your information, the IRS list of all registered Foreign Financial Institutions is publicly available on the link below and the IRS plans to update this list monthly.
FATCA Foreign Financial Institution (FFI)
From 1 July 2014 when opening a new account, Gulf One may request additional information and documentation from you, our valued customers, to identify if a US person has any ownership over the account, or to determine an entity account holder’s classification status for FATCA purposes.
Gulf One is also required by the regulations to clarify the status of all of our existing customers and in so doing we may request additional information from you. We therefore kindly request both your assistance and consideration of our request.
Find out more about FATCA on the IRS website
Under the IGA signed between Bahrain and the US, generally payments to US persons will be reported and no FATCA withholding will apply, except in certain limited circumstances.
These limited circumstances may include when an account is classified as non-compliant. This is known as A “Recalcitrant Account” and this classification can apply to both entities and to individuals.
We therefore kindly request your assistance when clarifying your FATCA Status.
From March 2015, Gulf One will be required to annually report either to a Bahrain based competent authority or directly to the IRS information concerning the accounts of US persons, non-compliant account holders and certain US owned entities. Where the information is provided to domestic authorities, this will subsequently be exchanged with, or sent to, the IRS depending on the terms of the IGA.
Please note that customers who do not provide requested information, are by law treated as non-compliant and we are required to report.
For more information on FATCA requirements, please do not hesitate to contact the Compliance Division.