Foreign Account Tax Compliance Act ("FATCA")
The Foreign Account Tax Compliance Act ("FATCA") is a US tax legislation which was enacted as part of the Hiring Incentives to Restore Employment ("HIRE") Act in March 2010 to prevent and detect US tax evasion and improve taxpayer compliance. FATCA is focused on strengthening information reporting and withholding compliance with respect to US persons that invest through, or in, non-US entities, such as Cyprus resident financial institutions.
The FATCA Intergovernmental Agreement (“IGA”) between the Cyprus and U.S. governments was signed on 2 December 2014, and published in the Official Gazette of the Republic of Cyprus on 5 December 2014. As a result, Cypriot Financial Institutions, such as the Cooperative Central Bank and the Cooperative Credit institutions, are required to comply with the relevant provisions of the Cyprus-U.S. IGA, such as, for example:
- Register on the Internal Revenue Service ("IRS") FATCA Portal and obtain a Global Intermediary Identification Number ("GIIN").
- Employ enhanced due diligence procedures in order to identify, document and report on all US persons to local authorities.
- Undertake the responsibility of withholding or reporting information upstream for withholding purposes in case of any payments relating to US-sourced income where the payment is made to non-FATCA compliant payees.
The Cooperative Central Bank and the Cooperative Credit institutions intend to fully comply with all FATCA provisions in line with the FATCA provisions of the Cyprus-U.S. IGA.As such the Cooperative Central Bank as well as the Cooperative Credit Institutions have registered with the U.S. Internal Revenue Service (IRS). The IRS has assigned the following Global Intermediary Identification Number (GIIN) to the Cooperative Central Bank:
For the IRS list of all FATCA registered FFIs, please visit the IRS website: IRS FFI List.