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Ahead of FATCA Guidance, Banks Harbor Concerns Over Changed AML Expectations
By Colby Adams
printWith the first deadline for an anti-tax evasion law a year away, foreign financial institutions remain unsure about their obligation to renew certain certifications and amend their recordkeeping procedures. Beginning next year, foreign financial institutions (FFIs) participating in a compliance program under the Foreign Account Tax Compliance Act (FATCA) must annually report data on their U.S. clients or pay a 30 percent withholding tax on pass-through payments involving uncooperative accountholders and nonparticipating financial institutions. Regulations proposed by the IRS in February, which would impose additional customer due diligence duties on participating banks, would also require institutions to re-certify with the...
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