We would like to inform your entity about the Foreign Account Tax Compliance Act (“FATCA”) and how this new U.S. law will potentially impact your relationship with Amrahbank (“AB” or the Bank).
The main objective of FATCA is the identification of certain U.S. taxpayers (“Specified U.S. persons”) while requiring financial institutions such as AB to comply with new procedures in terms of client documentation and reporting. The new rules of customer acceptance according to the requirements of FATCA have been applied since 01 July 2014 based on the intergovernmental agreement (IGA). However, the verification of accounts opened before 01 July 2014 is required based on some parameters.
In order to assess FATCA status of your entity, AB that has responsibility to report on Specified U.S. persons to the Ministry of Taxes of the Republic of Azerbaijan will execute the following actions based on the documents and information submitted to the bank:
- assess your FATCA status, including;
- identify whether your entity is a financial institution for FATCA purposes (also non-participating financial institution) or not
- identify whether your entity has controlling persons that are specified U.S persons
- identify and possibly remediate U.S. indicia (such as, for example, a U.S. address, U.S. telephone number or U.S. place of birth identified in your account documentation). In such case, we may ask you to provide additional documentation (such as, for example, the so-called “W8” or “W9” U.S. tax forms to confirm your FATCA status).
If you are identified as a Specified U.S. Person, non-participating financial institution or passive non-financial institute with controlling persons that are specified U.S. persons according to FATCA rules (or if AB would not be provided with the necessary documentation to classify your account for FATCA purposes), your account information will be reported to the Ministry of Taxes of the Republic of Azerbaijan (who will transmit such information to the IRS). It is not required to transfer any data about other entities and organizations beyond the above-mentioned category of persons.
Please note that, once the IGA is integrated into the legislation of Azerbaijan, not providing AB with the necessary documentation, may impact the relationship between AB and your entity.
You can get more information on FATCA at IRS website: www.irs.gov/FATCA or FATCA section of the official website of the Ministry of Taxes of the Republic of Azerbaijan: http://www.taxes.gov.az/modul.php?name=pages&page=151
Furthermore, your current advisor within AB stays also at your disposal for any question you may have on this matter.