BACKGROUND OF FATCA LAW
FATCA (Foreign Account Tax Compliance Act) is a US regulation aimed at combating tax evasion by US citizens and residents by parking financial assets outside of the United States.
Non-US financial institutions are responsible for identifying US taxpayers in their client portfolios and for reporting annually to the US tax authorities their financial assets.
POSITIONING OF THE BANK OF AFRICA GROUP
The usual positioning of the BANK OF AFRICA Group is to comply with international regulations. The Group complies with the FATCA, in conformity with regulations relating to the automatic exchange of information for tax purposes, namely the decree-law n ° 2-18-117 of February 23, 2018, in Morocco and all countries of operation.
The BANK OF AFRICA Group is registered with the US tax administration, the IRS (Internal Revenue Service), for all subsidiaries and branches eligible for the application of the FATCA. The purpose of the compliance system put in place is to identify customers eligible under the FATCA and to transmit information on their assets to the US tax authorities on an annual basis.
OUR CUSTOMERS AND FATCA
Anxious to provide its customers with the necessary support, the BANK OF AFRICA Group provide support to all customers, natural and legal persons, likely to be within the scope of FATCA; that is to say when they present at least an indicator of US citizenship or residence.
BANK OF AFRICA identifies these customers when entering into a relationship. The Group ensures the veracity of the indicators detected, notes their tax identification number (Taxpayer Identification Number) and obtains customer’s consent to provide their information to the IRS.
Annual declarations from reportable customers are sent by the Group directly or indirectly to the US tax authorities.
“US Persons” customers who do not wish to communicate their information to the American tax administration are qualified as “recalcitrant customers”: they are considered as non-cooperative with the FATCA compliance system and are subject to measures which may go as far as the suspension of services in connection with their accounts.
For more information, see https://www.irs.gov/businesses/corporations/foreign-account-tax-compliance-act-fatca