OREANDA-NEWS. July 09, 2014. This letter is to inform you that the US Foreign Account Tax Compliance Act (FATCA) will come into force.

FATCA targets non-payment of taxes by American taxpayers who hold bank accounts at foreign financial institutions.

FATCA demands that foreign financial institutions report to the US Internal Revenue Service (IRS) about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest.

All bank accounts opened by US taxpayers are subject to checks under the FATCA legislation.

ProCredit Bank JSC is a financial institution registered with the IRS and which complies with the requirements of FATCA. The Bank is obliged to perform appropriate checks on clients who open bank accounts as well as insist that clients submit additional documents (forms W-9, W-8BEN, W-8BEN-E, etc.) and if they are identified as US taxpayers, information related to such accounts and their holders must be provided to the IRS.

To this effect, the Bank checks compliance according to the following criteria:

US citizenship or residency status

Place of birth on US territory

Domicile, residential address on US territory

Telephone number registered in the USA

Client’s payment authorisations regarding funds transferred to accounts held at financial institutions in the USA

Signature rights granted to a person who permanently resides on US territory

Individual client’s postal address – including “general delivery”, “care of”, etc.

You can obtain additional information on the requirements of FACTA from the US IRS website: http://www.irs.gov.

1 A US Taxpayer is a person who is a US citizen or resident of USA including persons who have a permit to reside permanently in the USA, or is an association or corporation which: a) is registered in the USA in accordance with the laws of the United States, b) a US citizen or resident directly or indirectly owns 10% or more of the statutory capital.