On the 18th of March 2010 the United States (US) Government enacted The Foreign Account Tax Compliance Act (FATCA) to combat tax evasion by US persons holding investments in offshore accounts. FATCA requires Foreign Financial Institutions (FFIs) to provide the US Internal Revenue Service (IRS) with information on certain US persons invested in accounts outside of the US and for certain non-US entities to provide information about any US owners. CSB and subsidiaries are considered FFIs and therefore required to comply.
CSB and all subsidiaries are committed to upholding customer confidence and to keeping customer and client information confidential and secure. Our actions as they relate to FATCA are in strict compliance with the local regulations and legal framework of the Cook Islands.
Frequently Asked Questions
What is FATCA?
FATCA stands for the Foreign Account Tax Compliance Act. It refers to provisions included in the Hiring Incentives to Restore Employment Act that was signed into law on by the United States (US) Congress on 18 March 2010 and effective January 1, 2014. It adds a new chapter to the US Internal Revenue Code (chapter 4) which is aimed at addressing perceived tax abuse by US persons using accounts outside of the US.
Who is a US person?
- a U.S. citizen (including dual citizens) even if residing outside of the US
- a US passport holder
- a person born in the US unless renounced citizenship
- a U.S. resident alien for tax purposes (green card holders)
- entities(partnerships,corporations, trusts, etc) where one or more United States persons have control or over 10% shareholding
What is a Foreign Financial Institution (FFI)?
- accept deposits as a regular business function are engaged in the business of investing
- holds financial assets for the account of others as a substantial portion of its business
- are involved in reinvesting, or trading in securities, partnership interests, commodities, or any interest in such securities, partnership interests, or commodities
Is FATCA applicable to individuals or business customers?
Both. FATCA is applicable to both individuals and business customers.
How does FATCA work?
- FFIs are required to register with the US Internal Revenue Service (IRS) and will be assigned a Global Intermediary Identification Number (GIIN). FFIs are required to submit information on persons with US indicia who hold accounts with them or own over 10 per cent (10%) of an entity that has an account.
How does FATCA impact our customers?
All customers are subject to an electronic perusal of their account information. This perusal seeks to determine which accounts have US indicia. US “indicia” include: whether a customer has US citizenship or permanent residency. It also includes the use of US address; Post Office Boxes and US telephone numbers. If these basic levels of indicia are identified, customers will be required to disclose their legal name, address, and US Tax Information Number (TIN). This information, as well as the account number, the account balance will be sent to the IRS.
I have U.S. Dollar Account, will this be reported?
The currency of the account does not determine whether the information is reported. FATCA requires information to be reported on accounts held by U.S. Persons who meet one of more of the criteria identified in Question 2 and with balances above the reporting threshold regardless of account currency.
I qualify as a U.S. Person how does FATCA apply to me?
If you qualify as a U.S. Person based on the information outlined in question #2, you may be required to submit further information to us. Customers are also advised to seek further advice from a tax professional.
Do FATCA regulations apply to joint accounts?
- If one of the account holders qualifies as a U.S person, and the account balance is above the reporting threshold- FATCA requirements are that the account should be reported. Customers are also advised to seek further advice from a tax professional.
Does CSB provide tax related advice?
No, customers are advised to seek tax advice from a relevant tax professional.
Is more detailed information on FATCA available online?
Yes. For further information on FATCA, please visit:
If asked to complete a US Tax Declaration(s), you can access it via the below,