Bank
Our cash account is a foundation for your private banking experience, providing you with flexibility, accessibility and control of multiple currencies, fixed deposits and global money transfers
Reporting requirements
We’d like to help you understand what the international reporting requirements, such as Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA), mean for you.
FATCA
General Information
On the 18th of March 2010 the United States 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.
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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 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.
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Who is a US person
- a U.S. citizen (including dual citizens) even if residing outside of the US
- a U.S. passport holder
- a person born in the U.S. 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
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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
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Both. FATCA is applicable to both individuals and business customers.
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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% of an entity that has an account.
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All CSB clients 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 a 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 and the account balance will be sent to the IRS.
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The currency of the account does not determine whether the information is reported. FATCA requires information to be reported on accounts held by US persons who meet one or more of the criteria described above and with balances above the reporting threshold, regardless of account currency.
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If you qualify as a U.S. Person, you may be required to submit further information to us. Customers are also advised to seek further advice from a tax professional.
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If one of the account holders qualifies as a U.S. person and the account balance is above the reporting threshold, the account should be reported in accordance with the FATCA requirements. Clients are advised to seek further advice from a tax professional.
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No, customers are advised to seek tax advice from a relevant tax professional.
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For further information on FATCA, please visit the IRS website.
COMMON REPORTING STANDARD
General information
To help fight against tax evasion and protect the integrity of tax systems, governments around the world are introducing a new information-gathering and reporting requirement for financial institutions. This is known as the Common Reporting Standard (CRS) and we’d like to help you understand what it means for you.
Under the CRS, we are required to determine where you are «tax resident» (this will usually be where you are liable to pay income or corporate taxes). We will base this on information we have already or we may ask you for additional details.
If you are tax resident outside the country where you bank then we may be required to provide details, including information relating to your accounts, to the national tax authority in the country where the account is held. They may then share that information with the tax authority of the country (or countries) where you are tax resident.
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Who is affected
Whether you are an individual customer or you have a business relationship with us, the CRS may affect you. The impact will depend on factors such as:
- the type of account or product you hold with us
- where you bank with us
- where you live or operate as a business
Don’t worry, we will contact you if you are affected and will confirm what you need to do to make sure that we correctly identify where you are tax resident. Please note that you may receive more than one request for information, if you have multiple relationships with us.
If you have any questions regarding your tax residency, please refer to the rules governing tax residence that have been published by each national tax authority. If you have any specific questions regarding your tax residency, please contact a professional tax adviser, as we are unable to provide tax advice.
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Foreign Financial Institution (FFI)
Taxpayer Identification Numbers Your Taxpayer Identification Number (TIN) is a unique combination of letters and/or numbers assigned to you/your entity. Some countries do not issue a TIN, but may rely on other issued numbers such as social security/national insurance numbers or company registration numbers for entities. You may need to provide these if requested. The OECD has published a list of the acceptable Taxpayer Identification Number (TIN) formats and their alternatives.
FATCA Even if you have already provided information under the United States government’s Foreign Account Tax Compliance Act, you may still need to provide additional information for the CRS as these are different regulations with different requirements
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Taxpayer Identification Numbers
Your Taxpayer Identification Number (TIN) is a unique combination of letters and/or numbers assigned to you/your entity. Some countries do not issue a TIN, but may rely on other issued numbers such as social security/national insurance numbers or company registration numbers for entities. You may need to provide these if requested. The OECD has published a list of the acceptable Taxpayer Identification Number (TIN) formats and their alternatives.
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FATCA
Even if you have already provided information under the United States government's Foreign Account Tax Compliance Act , you may still need to provide additional information for the CRS as these are different regulations with different requirements.
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Self-Certification
If you are asked to complete a self-certification form(s), you can access them on the Helpful Forms page, in the Tax Reporting section.
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OECD
The Organisation for Economic Co-operation and Development (OECD) has developed rules to be implemented by governments participating in the CRS. Visit the OECD Automatic Exchange of Information portal for more information.