FATCA

In March of 2010 the US Government enacted the Foreign Account Tax Compliance Act (commonly referred to as, FATCA, to improve tax compliance by US citizens, residents, or persons qualified as US taxpayers and entitles having significant affiliation with US persons.

Under the Act, foreign financial institutions are required to report annually on the financial assets and offshore accounts of US citizens and residents, to the Internal Revenue Service (IRS).

1. The name;
2. The address;
3. U.S. Tax Identification Number (TIN) of each account holder;
4. Account Number;
5. The year-end account balance or value;
6. Gross receipts of the account; and
7. Gross withdrawals or payments from the account

As a US citizen or US resident applying for an account, Banks are required to request that US Applicants complete and return the Form W-9 – Request for Tax Identification Number and Certification to us by (DATE)

Where an applicant’s US citizenship has changed or are no longer considered a US resident, Banks are required to confirm this by competing a Form W-8BEN – Certificate of Foreign Status of Beneficial Owner for US Tax Withholding and Reporting for the US Internal Revenue Service and update account information.

In this case when applying for an account or changing the status of an existing applicants will be required to provide the following documents:

• Enunciation of your US citizenship acknowledgment by the US Internal Revenue Service, if applicable.
• If US citizenship, due to birth, was not acquired a written explanation of the reason will be required.
• A valid passport,
• A recent utility bill or recent mail from a financial institution showing your full name and present address.
• In the event you are unable to visit us, kindly contact the writer before the date last mentioned to make alternate arrangements.

For more information please follow the link IRS Gov FATCA
 

The FATCA regulations are being imposed by the American IRS on all non-US Financial Institutions who wish to deal with US citizens.

There are severe restrictions on Financial Institutions who opt out of complying with the FATCA regulations and Caye International Bank is registered with the IRS to be fully compliant with is new regulations. This allows us to continue to serve not only all our US clients but also all our non US clients who need to send money to or from US banks.

The extra workload and compliance required by Financial Institutions, including ourselves, is not insubstantial and we are having to follow the rest of the industry and charge a fee to our clients to cover the extra costs incurred.

From our President Peter Zipper to all our customers. 

August 2013

Dear Customer,

Pursuant to The Foreign Account Tax Compliance Act (FATCA) which goes into effect July 1, 2014, Caye International Bank is undertaking compliance reviews of all of our accounts which will commence November 1, 2013.  You may be asked as part of these compliance reviews to update certain information about your account and for US persons to supply the bank with tax payer identification information as required by the new law.

The Caye Bank Board is committed to making the process as simple and easy as possible for our customers and to allocate the costs at our compliance equitably to our customers as follows:

  1. Initially, each client account will be subject to a one-time $100 fee to have the compliance reviews done.
  2. If any updated information is needed for your account, you will be asked to supply it to the bank within 60 days.
  3. If you are not deemed to be a U.S client or have a U.S persons directly or indirectly owning 10% or more at the accounts assets or a shareholder or debt holder, then your compliance review will be complete.
  4. If it is determined that you are a US person or foreign entity owned by a U.S person with more than 10% of the company’s equity as a shareholder, debt holder or hold a similar interest through a trust or other structure, we will be required to collect additional personal, corporate and trust information from you, including a U.S. tax payer I.D number.
  5. In those cases where a U.S owner is present, we will also require new paperwork signed by you permitting us to disclose your account information to the U.S. IRS as a waiver from Belize’s bank secrecy regulations.  All other aspects of Belize bank secrecy will remain in effect.
  6. U.S. persons signing and returning the waiver will be able to continue banking with us after January 1, 2014.  There will however, be an additional “one time” fee of $250 charged to your account to cover the bank’s costs of our duplicate software system and legal cost, associated with FATCA compliance.  While these changes are regrettable, we see no better or more equitable method of passing along these additional costs and expenses.

If you object to having a compliance review, providing information necessary for us to comply with FATCA or having the compliance and FATCA implementation fees debited from your account, please inform us immediately, so we can begin the process of closing your account.  If your account balance has dropped below the threshold necessary to have those fees paid, you will have until December 1, 2013 to bring up your account balance or we will have no choice but to close your account.

We look forward to getting past FATCA implementation and continuing to serve your international banking needs.

Sincerely,

Peter Zipper
President
Caye International Bank, Ltd.

 

FAQ

Q: I’m Not a U.S. citizen does any of this apply to me?
A: Yes, I’m afraid it does. We are needing to review ALL our accounts, as such the $100 compliance review fee is being applied to every account

Q: When will the Compliance review fee be charged to my account
A: The $100 fee will be applied on the 31st October 2013.

Q: I have multiple accounts, does the $100 compliance fee apply to all of them 
A: Yes, different accounts can have different signatories, and so each needs to be reviewed.

Q: I am a US citizen and I know the FATCA regulations apply to me, can I supply the extra information now to save time later?
A: Yes, and thank you for helping us complete this FATCA registration process. Please download, complete and return the Personal Information Sheet available here

Q: How do I close my account
A: If you do decide to close your account the form can be found on this website under Customer Service -> Forms (or by clicking here). Just complete the form, scan and email to us at services@cayebank.bz