General

 

Request to Customers Concerning the "Foreign Account Tax Compliance Act (FATCA)"

The Foreign Account Tax Compliance Act ("FATCA") was introduced in March 2010 in the United States (U.S.). It is designed to prevent tax evasion by U.S. taxpayers using their accounts opened in financial institutions overseas (meaning countries other than the U.S.). As a result of the FATCA agreement between our country and the U.S. our Bank has introduced new procedures under the FATCA effective July 1, 2014.

If our customers are U.S. citizens for the purpose of FATCA (U.S. taxpayers) as described below, Demerara Bank Limited will report on specified accounts periodically to the U.S. Internal Revenue Service either directly or through our local regulatory agencies. We therefore will require our customers who are subject to this reporting to submit documents stipulated by the Bank including a statement agreeing to the information disclosure. Failure of non-compliance with the Act results in a 30% withholding of certain payments to accounts held by non- cooperating citizens.

 

Who does FATCA apply to?

  1. U.S. citizens for the purpose of FATCA refer to U.S. citizens under the U.S. taxation laws. They are not limited to people who have U.S. citizenship or nationality, but include people who have permanent residency in the U.S. (Green Card) and people who are residents in the U.S.
  2. US Entities – A partnership, Sole Trader, Company or Association or Trust, created or organized or incorporated in the U.S. or under laws of the U.S.
  3. Individual and Entities with US Indicia. A US Indicia is an indicator that an individual/entity has some affiliation to the United States.

 

Below is a list of indica for U.S.  individuals

  • US citizen or resident (green card) status
  • US place of Birth
  • US home or mailing address
  • If your only address is a US Post Office Box, ‘in care of’ US address or hold mail address
  • A person that meets the substantial presence test.
  • Power of Attorney granted to someone with a US address
  • A US telephone number
  • Standing Order to transfer funds to an account maintained in the US or instructions regularly received from a US address.

 

Entities

  • An entity formed in the US or under the US laws
  • Entities where shareholders with more than 10% shareholding have US Indicia

If you have US Indicia, you are required to fill Forms W-9, W-8BEN, and/or W-8BEN-E and/or a Bank declaration. Further, you will be required to provide appropriate documentary evidence (eg. Passport, ID, driver’s license, green card) to the Bank.

The Bank cannot offer advice on your FATCA Tax status or classification. For more information on FATCA you can visit the IRD website at www.irs.gov/FATCA or contact a professional tax advisor.