Automatic Exchange of Information (AEoI)

FACTA and CRS

In the current environment which demands transparency, and the increased focus on all Financial Institutions to know their clients, regular checks are required to ensure Financial Institutions adhere to the complex regulatory regulations.

The Foreign Account Tax Compliance Act (FATCA) was passed as part of the Hiring Incentives to Restore Employment (HIRE) Act. This introduced many regulatory requirements for all Financial Institutions to report financial accounts held by US account holders.

Furthermore, the OECD Common Reporting Standard (CRS) adds to these regulatory requirements. CRS came into operation in Ireland in 2016 whereby Irish Financial Institutions are required to report non-resident account holders to Revenue on an annual basis.

The FATCA and CRS rules impact all financial service providers in Ireland. Under AEoI a Reporting Financial Institution must review details of account holders and report any non-resident accounts to the tax authorities.

How BDO can help

• FATCA/CRS Classification
• FATCA Registration with the Internal Revenue Services (IRS)
• Review of FATCA/CRS sections of legal documentation – Prospectus, Trust Deeds, Self-certification forms
• Creation/Review of FATCA/CRS procedures
• FATCA/CRS annual filing
• Assistance with Revenue Profile Interview
• GAP Analysis - we can assist with a gap analysis and identify required changes to be implemented. This includes a remediation plan and clear actions for any gaps identified.

Qualified Intermediary (QI) Services

A Qualified Intermediary is a foreign financial institution such as a bank, broker or asset manager, which pays US source income to its customers and has signed a Qualified Intermediary Agreement (QIA) with the US tax authorities, the IRS.

QIs are subject to a set of responsibilities, including:

• Identification of customers
• Withholding
• Annual Reporting

The U.S. Qualified Intermediary (QI) regime was introduced by the IRS and became effective as from 1 January 2001. On 27 June 2014, the IRS released the Rev. Proc. 2014-39 with the revised QI withholding agreement to reflect the new FATCA Regime.

How BDO can help

• Drafting and review of the QI sections of legal documentation – Prospectus, Subscription forms
• Creation/Review of QI procedures
• Assistance with/review of QI Annual Report
• Review of documentation received from clients to ensure appropriate withholding tax rates are applied
• Performing QI health check of the business including processes and procedures
• GAP Analysis - we can assist with a gap analysis and identify required changes to be implemented. This includes a remediation plan and clear actions for any gaps identified.