<p>[vc_row equal_height="yes" content_placement="top" css=".vc_custom_1579149649615{border-bottom-width: 2px !important;border-bottom-color: #e8e8e8 !important;border-bottom-style: solid !important;}"][vc_column][vc_custom_heading text="Foreign Account Tax Compliance Act -FATCA Overview" font_container="tag:h2|text_align:left|color:%23154fa9" google_fonts="font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal"][vc_custom_heading text="On March 18, 2010 the United States (US) Government enacted the Foreign Account Tax Compliance Act (FATCA) to combat tax evasion by US persons holding investments in offshore accounts. FATCA requires Foreign Financial Institutions (FFIs) to provide the US Internal Revenue Service (IRS) with information on certain US persons who would have invested in accounts outside of the US and for certain non-US entities to provide information about any US owners. The St. Vincent Building & Loan Association is a FFI and is therefore required to comply. On an annual basis, we are required to report information on financial accounts held directly or indirectly by US Persons." font_container="tag:div|font_size:20|text_align:justify" google_fonts="font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:400%20regular%3A400%3Anormal"][vc_custom_heading text="The Association is committed to upholding customer confidence and to keeping customer and client information confidential and secured. Our 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.<br></p>
<p>Steps required for FFIs to be compliant with FATCA regulations:<br></p>
<ol>
<li>Signing of formal agreement with the United States Internal Revenue Service (IRS) confirming FATCA Compliance;</li>
<li>Amending account opening procedures in order to capture FATCA related information;</li>
<li>Updating information of current customers;</li>
<li>Annual reporting to the IRS on qualifying ‘U.S. Persons’. In addition, it may be necessary to report information about customers who do not provide the required documentation.</li>
</ol>
<p>" font_container="tag:div|font_size:20|text_align:justify" google_fonts="font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:400%20regular%3A400%3Anormal"][vc_custom_heading text="FREQUENTLY ASKED QUESTIONS" font_container="tag:h2|text_align:left|color:%23ffffff" google_fonts="font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:400%20regular%3A400%3Anormal" css=".vc_custom_1579232415022{background-color: #000000 !important;}"][vc_toggle title="What is FATCA?" custom_font_container="tag:h2|font_size:20px|text_align:left|color:%23154fa9|line_height:36px" custom_google_fonts="font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal" use_custom_heading="true"]</p>
<h2>FATCA stands for the Foreign Account Tax Compliance Act. It refers to provisions included in the Hiring Incentives to Restore Employment Act that was signed into law by the United States (US) Congress on March 18, 2010 and which was effective June 30, 2014. It adds a new chapter to the US Internal Revenue Code (chapter 4) which is aimed at addressing perceived tax abuse by US persons using accounts outside of the US.</h2>
<p>[/vc_toggle][vc_toggle title="What is FATCA?" custom_font_container="tag:h2|font_size:20px|text_align:left|color:%23154fa9|line_height:36px" custom_google_fonts="font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal" use_custom_heading="true"]<span style="color: #154fa9;"><strong>FREQUENTLY ASKED QUESTIONS:</strong></span><br />
<span style="color: #154fa9;"> </span></p>
<ol>
<li><span style="color: #154fa9;"><strong> What is FATCA?</strong></span></li>
</ol>
<p>FATCA stands for the Foreign Account Tax Compliance Act. It refers to provisions included in the Hiring Incentives to Restore Employment Act that was signed into law by the United States (US) Congress on March 18, 2010 and which was effective June 30, 2014. It adds a new chapter to the US Internal Revenue Code (chapter 4) which is aimed at addressing perceived tax abuse by US persons using accounts outside of the US.</p>
<ol start="2">
<li><span style="color: #154fa9;"><strong> Who is a US person?</strong></span></li>
</ol>
<p>The term “US person” includes, but is not limited to:</p>
<ul>
<li>a US citizen (including dual citizens) even if residing outside of the US;</li>
<li>a US passport holder;</li>
<li>a person born in the US unless citizenship has been renounced;</li>
<li>a US resident alien for tax purposes (green card holders);</li>
<li>entities (partnerships, corporations, trusts, etc.) where one or more United States persons have control or over 10% shareholding.</li>
</ul>
<ol start="3">
<li><span style="color: #154fa9;"><strong> What is a Foreign Financial Institution (FFI)?</strong></span></li>
</ol>
<p>Foreign Financial Institutions (FFIs) are institutions that:</p>
<ul>
<li>accept deposits as a regular business function;</li>
<li>holds financial assets for the account of others as a substantial portion of its business;</li>
<li>are engaged in the business of investing;</li>
<li>are involved in reinvesting, or trading in securities, partnership interests, commodities, or any interest in such securities, partnership interests, or commodities.</li>
</ul>
<ol start="4">
<li><span style="color: #154fa9;"><strong> Is FATCA applicable to individuals or business customers?</strong></span></li>
</ol>
<p>Both. FATCA is applicable to both individuals and business customers.</p>
<ol start="5">
<li><span style="color: #154fa9;"><strong> How will FATCA work?</strong></span></li>
</ol>
<p>FFIs will be required to register with the US Internal Revenue Service (IRS) and will be assigned a Global Intermediary Identification Number (GIIN). FFIs will be required to submit information on persons with US indicia who hold accounts with them or own over 10 per cent (10%) of an entity that has an account with the FFI, above a stipulated threshold. It is important to note that this will vary for individuals and companies.</p>
<ol start="6">
<li><span style="color: #154fa9;"><strong> How will FATCA impact our customers?</strong></span></li>
</ol>
<p><span style="color: #154fa9;"> </span></p>
<p>All customers will be subject to an electronic perusal of their account information. This perusal seeks to determine which accounts have US indicia. US “indicia” include: whether a customer has US citizenship or permanent residency. It also includes the use of US address; Post Office Boxes and US telephone numbers. If these basic levels of indicia are identified, customers will be required to disclose their legal name, address, and US Tax Information Number (TIN). This information, as well as the account number, the account balance; and the gross receipts and gross withdrawals or payments from the account will be sent to the IRS. FATCA is unlikely to impact the vast majority of customers.</p>
<p>Existing Customers</p>
<p>Customers holding accounts which predate the implementation date will be required to update their account information and as per regulations if the account exhibits US indicia, the customer may be asked to provide additional information as a US person or to prove that they are not a US person.</p>
<p>Impact on New Customers</p>
<p>Changes in onboarding procedures will impact new customers as additional information may be requested from new applicants to determine whether they are US persons.</p>
<ol start="7">
<li><span style="color: #154fa9;"><strong> What are the consequences to customers for not disclosing the information required by FATCA?</strong></span></li>
</ol>
<p>Customers who do not disclose the requisite information to an FFI will have their accounts flagged as non-compliant. The FFI will be required to eventually close the account if the information is not received within a specified period of time. Until the closure of the account, a 30% levy will be applied to any payment of interest, rents, royalties, salaries, wages, annuities, licensing fees, income, and profits derived from sources within the US.</p>
<ol start="8">
<li><span style="color: #154fa9;"><strong> When is the commencement date for FATCA?</strong></span></li>
</ol>
<p>The implementation of FATCA is slated for July 1, 2014.</p>
<ol start="9">
<li><span style="color: #154fa9;"><strong> I have a U.S. Dollar Account; will this be reported?</strong></span></li>
</ol>
<p>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 in question No. 2 and with balances above the reporting threshold regardless of account currency.</p>
<ol start="10">
<li><span style="color: #154fa9;"><strong> I qualify as a U.S. Person how will FATCA apply to me?</strong></span></li>
</ol>
<p><span style="color: #154fa9;"> </span></p>
<p>If you qualify as a U.S. Person based on the information outlined in question No.2, you may be required to submit further information to your Financial Institution. Customers are also advised to seek further advice from a tax professional.</p>
<ol start="11">
<li><span style="color: #154fa9;"><strong> Do FATCA regulations apply to joint accounts?</strong></span></li>
</ol>
<p><span style="color: #154fa9;"> </span></p>
<p>If one of the account holders qualifies as a U.S person, and the account balance is above the reporting threshold, FATCA requirements are that the account should be reported. Customers are also advised to seek further advice from a tax professional.</p>
<ol start="12">
<li><span style="color: #154fa9;"><strong> Can my financial institution provide tax related advice?</strong></span></li>
</ol>
<p><span style="color: #154fa9;"> </span></p>
<p>Your financial institution can only provide general FATCA information, however customers are advised to see tax advice from a relevant tax professional.</p>
<ol start="13">
<li><span style="color: #154fa9;"><strong> Are all Financial Institutions complying with FATCA?</strong></span></li>
</ol>
<p>Financial institutions across the globe in many jurisdictions have signed agreements to comply and many more intend to sign. There are exceptions however, with some financial institutions opting to adopt a different approach to FATCA.</p>
<ol start="14">
<li><span style="color: color: #154fa9;"><strong> Is customer consent required prior to sharing information?</strong></span></li>
</ol>
<p>Once the financial institution operates in a country that has signed an inter-governmental agreement (IGA) with the US, the laws will be amended to facilitate FATCA reporting by financial institutions. The ECCU has negotiated IGAs for member countries; and there is uniform legislation to facilitate FATCA compliance.</p>
<ol start="15">
<li><span style="color: #154fa9;"><strong> Is more detailed information on FATCA available online?</strong></span></li>
</ol>
<p>Yes. For further information on FATCA, please visit: <u><a href="http://www.irs.gov/FATCA">http://www.irs.gov/FATCA</a></u>[/vc_toggle][/vc_column][/vc_row]</p>
