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Foreign Account Tax Compliance Act (FATCA) - Factsheet

 
What is FATCA? 
 
FATCA is the Foreign Account Tax Compliance Act, an American law enacted in 2010 designed to prevent US Taxpayers from concealing their assets from the American tax service (IRS).
 
Is it mandatory for Commercial Bank to be compliant with FATCA?

Yes; FATCA has been enacted by the US government but the requirements are part of the local regulatory framework in Qatar as an Inter-Governmental Agreement (IGA) has been reached between the US government and the government of Qatar.
 
Is FATCA applicable to Qatari financial institutions only?
 
No; FATCA is applicable on all Financial Institutions worldwide.
 
What is the main obligation for financial institutions?
 
Financial institutions must perform extended due diligence during the customer
onboarding and account opening process to identify US persons (individuals and
entities). This will be achieved through the completion of the self-certification form
that must be signed by all new customers as well as existing customers opening
additional accounts.
 
Should the Self-certification form be signed by US customers only?
 
No; the Self-certification form is mandatory for all new customer accounts from 1st July 2014, irrespective of the nationality, as mandated by IRS.
 
Is the Self-certification form the same for individual, enterprise and
wholesale/corporate accounts?
 
No; a separate form is applicable for individual and corporate / entity customers
The form can be found CB Net/CB Website, as well as CB branches.
 
Is the self-certification form required for an existing customer opening
additional accounts?
 
Yes; the self-certification form is mandatory for an existing customer opening
additional financial accounts if the form has not been completed and signed on an
earlier occasion. The FATCA form needs only to be signed once; it is not required if the same customer opens additional accounts subsequent to signing.
 
What is the validity of the Self-certification form?

The form is normally valid for life. However, it is the customer’s responsibility to inform the bank in case of any change to his / her US status.
 
What action is to be taken for customers who refuse to sign the selfcertification form or provide required information?
 
All new and existing customers wishing to open new accounts are required to sign the self-certification form as mandated by FATCA law. This applies to all financial institutions in Qatar, and as such, CBQ reserves the right to refuse the opening of new accounts for customers unwilling to sign the form and provide the required information.
 
For entities, what is the classification of a local Qatari company?
 
• Non- financial government / semi-government entities in Qatar
• Entities with majority Qatari ownership (over 50%)
 
In the case of corporate accounts, do we need to collect information about US partners for all type of entities?
 
No, the collection of information of US partners shall only apply to US persons that hold majority shares of a “Passive Non-Financial Foreign Entity” (any financial foreign entity that is not active, such as holding & investment companies)
 
What is meant by the phrase ‘US person’ under FATCA?
 
They are:
 
• A US citizen / national
• An American Green Card holder
• Born in the US
• Residing / partially residing in the US
 
Does FATCA apply to US National / or Green Card holder who has renounced his/her US status?
 
No – but the individual will have to provide a proof of renunciation of citizenship /
Green Card
 
What forms are required to be submitted by the customer under FATCA?

Currently, FATCA regulations require the completion and submission of the FATCA “self-certification” form for all new accounts opened (including secondary accounts for existing customers)
 
 
 
 
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