The FATCA (Foreign Account Tax Compliance Act), approved on March 18, 2010, by the US Congress, is a legal document aimed at preventing US Persons who use non-US resident financial institutions to protect their income. In this sense, foreign (non-US) financial institutions are required to report to US tax authorities the holders of US bank accounts.
US Persons are described as:
- US citizens or residents of the United States;
- Individuals born in the USA;
- Individuals with current address of residence or correspondence in the USA;
- Individuals with at least one current telephone number of US origin;
- When there are indications of instructions to make payments from the policy (s) to bank accounts held in the US;
- When there is evidence of power of attorney or other form of empowerment granted to a person with a US address;
- Individuals who provide a postal address with characteristics of “care of …” as the only address available.
Any new customer that matches at least one of these characteristics is considered a potential US Person;
In the case of corporate entities, they are considered US Persons, companies whose registered office is in the United States and companies in which one or more owners are US Persons.