Foreign Account Tax Compliance Act (FATCA) services

The United States FATCA law has far-reaching consequences for non-US companies with US assets or accounts. Failure to comply can mean big penalties and multiple country-specific mechanisms make global compliance complicated.

TMF Group’s comprehensive FATCA compliance services and global network of local experts can simplify and support any aspect of compliance or relieve you of the entire burden.

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What is FATCA?

Under FATCA, the Foreign Account Tax Compliance Act, any company officially classified as a ‘foreign financial institution’ (FFI) must report to the US authorities any financial accounts held for US persons or citizens, as well as any foreign entities in which US persons or citizens own a substantial stake. Penalties for failure include a 30% withholding tax on gross US earnings.

FATCA compliance is through bilateral inter-governmental agreements (IGAs), which vary from jurisdiction to jurisdiction, making global compliance complicated.

  • Some IGAs let FFIs report locally – but only through that jurisdiction’s unique local process because the FATCA requirements have been incorporated into local law in a distinctive way.
  • Other IGAs let FFIs report straight to the US tax authorities but here there is a risk of conflict with local regulations governing things like data protection.

FATCA reporting, classification and compliance with TMF Group

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Classification

Companies must determine for themselves whether they qualify as an FFI or fall into some other FATCA classification. TMF Group’s comprehensive classification service does this job quickly and reliably.

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New client onboarding

For FATCA onboarding, customer due diligence checks must be performed on all new account holders to check whether they are ‘reportable’. We help collate and review the critical documentation, identify US indicia (signs of possible FATCA reporting obligations) and resolve any problems, working sensitively with the account holder where necessary.

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Reporting

Whether reporting direct to the US or via the local tax authorities, our FATCA reporting services relieve international clients of their entire administrative burden, as well as all procedural uncertainty, across any number of jurisdictions.

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Registration

We help FFIs register with the US tax authorities (IRS) to obtain their Global Intermediary Identification Number (GIIN). 

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Due diligence for existing accounts

As with onboarding, we collect, review and assess account-holder information, review indicia, and help resolve issues as part of FATCA due diligence. We then provide clients and their account holders with clear compliance overviews.

We make a complex world simple

TMF Group is a leading provider of critical administrative services, helping clients invest and operate safely around the world.

With more than 10,000 colleagues in 125 offices across 86 jurisdictions, all working to the same high standards of service and security, we provide our clients with local expertise where it is needed most. Our locations cover 92% of world GDP and 95% of FDI inflow.

We are a key part of our clients’ governance, providing the accounting, tax, payroll, fund administration and legal entity management services essential to their success. We make sure rules are followed, reputations protected and operational compliance maintained.

Our global service model and technology platform put our clients in control of their portfolio of entities and global locations. The data insights we deliver keep them on top of emerging regulation, the status of their own activity and any points of risk.

We serve corporates, financial institutions, asset managers, private equity and real estate investors, and family offices. Our clients include the majority of the Fortune Global 500, FTSE 100 and top 300 private equity firms. 

Find out more about our Foreign Account Tax Compliance Act (FATCA) services

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