FATCA

Tax transparency for US persons

There are a number of substantial changes being made by financial regulators, governments and banks to ensure the protection and long-term safety of both the financial system and our customers’ interests. One of these regulations is the Foreign Account Tax Compliance Act (FATCA), effective as of 1 July 2014.

What is FATCA?

The Foreign Account Tax Compliance Act (FATCA) is legislation introduced by the United States Government and is designed to encourage enhanced tax compliance. HSBC is committed to becoming fully FATCA compliant in all countries and jurisdictions where we operate.

FATCA seeks to prevent US persons from using non-US accounts and non-US entities to avoid US taxation on their income and assets.

There are three key elements to HSBC’s FATCA compliance:

  • The classification, reporting and withholding obligations under the legislation relating to HSBC clients or counterparties.
  • The registration of affected HSBC entities with the IRS as foreign financial institutions (FFIs) and provision of HSBC’s FATCA documentation to our clients and counterparties.
  • The ongoing monitoring and certification of FATCA compliance.

The IRS website contains FATCA FAQ pages containing information on a variety of FATCA topics. The IRS website also contains a summary of FATCA timelines.

 

Last updated: 6 August 2018