The Foreign Account Tax Compliance Act (“FATCA”) is a U.S. law whose objective is to combat tax evasion by U.S. citizens and residents. The U.S. tax authority (the Internal Revenue Service or “IRS”) has set up a framework to collect information relating to foreign income and assets held by U.S. taxpayers outside the United States from non-U.S. financial institutions on a yearly basis.
Starting 1 July 2014, financial institutions such as banks, life insurance companies, asset management companies, custodians, etc. will have to put in place procedures to identify their U.S. clients. Over the course of 2015, financial institutions will begin reporting the identity and the tax identification number of their U.S. clients as well as their account balances as at 31 December 2014 to the IRS. Additional information on income, then on the gross proceeds resulting from the sale of securities, will be progressively added to the reporting in the coming years.
In order to facilitate the implementation of FATCA, a large number of countries, including France, have negotiated intergovernmental agreements with the United States, whereby they undertake to transpose the tax reporting requirements of FATCA into their national laws.
Crédit Agricole SA Group decided to comply with FATCA from the outset, setting up a transverse project team to carry out the implementation of this regulation. All financial institutions within the Group impacted by FATCA are working to comply with the regulation and be ready once it comes into force. Crédit Agricole SA Group is planning to register on the IRS portal within allotted timeframes in order to class as a FATCA compliant financial institution on the first list published by the IRS. This registration is dependent on the signing of the intergovernmental agreement between France and the United States.
Crédit Agricole S.A. Group will contact existing individual clients with apparent U.S. links in order to determine their situation with respect to the law and to obtain the relevant documentation if necessary.
Listed companies and their subsidiaries as well as industrial and commercial companies are exempt from this regulation. However, where entities generate most of their revenues from financial assets or where more than 50% of their balance sheet consists of financial assets, they will be subject to an analysis of their ownership. Where a beneficial owner is a U.S. citizen or a U.S. resident for tax purposes, they must provide their U.S. tax identification number. Crédit Agricole SA Group may contact its entity clients to confirm their status in relation to the regulation.
After 1 July 2014, when opening a new account, Crédit Agricole SA Group will collect information from its customers allowing the identification of U.S. citizens or U.S. residents for tax purposes. For U.S. customers, the documentation required for IRS reporting will be requested. Entity clients may also be asked to provide other documents in order to confirm their FATCA status.
For counterparties that are financial institutions or customers located in countries that have not signed an intergovernmental agreement, a 30% withholding tax will be levied on certain income from U.S. sources in case of non-compliance with FATCA. Moreover, the total amount of payments made to non-participating financial institutions in 2015 and 2016 will be reported to the IRS.
FATCA ID: CEQ4EV.00068
GIIN (Global Intermediary Identification Number): CEQ4EV.00068.ME.442
Date registration validated: 07.04.2014; Date registration implemented: 30.06.2014
Registered Deemed-Compliant Financial Institution (including a Reporting Financial Institution under a Model 1 IGA), Reporting Model 1 FFI