Within the framework of the FATCA (Foreign Account Tax Compliance Act, U.S. legislation on the taxation of foreign accounts) and CRS (Common Reporting Standard, the Organization for Economic Cooperation and Development's standard on automatic exchange of financial account information), JSC RKO "NODA" is obligated to identify clients who are foreign taxpayers (tax residents of foreign countries) and subsequently provide information about such clients to Russian and foreign competent authorities.
What is FATCA?
The FATCA law is aimed at combating tax evasion by U.S. taxpayers. It applies to financial institutions worldwide, obliging them to identify and report to the U.S. Internal Revenue Service (IRS) information about accounts held by U.S. residents and persons controlled by them. In case of non-compliance with FATCA requirements, certain types of income received by the financial institution and its clients from U.S. sources may be subject to a penalty of 30% of the transaction amount.
FATCA Status of JSC RKO "NODA"
To comply with FATCA requirements, JSC RKO "NODA" has registered on the IRS portal as a financial institution complying with FATCA requirements. The RKO has been assigned a Global Intermediary Identification Number (GIIN) – QCSYZV.99999.SL.643.
Whom does FATCA apply to?
FATCA applies to Foreign Financial Institutions, such as JSC RKO "NODA," and U.S. taxpayers (both individuals and legal entities). Foreign Financial Institutions need to identify all their clients under FATCA, indirectly extending the impact of FATCA to all bank clients.
Consequences of Non-Compliance with FATCA Requirements
If a client refuses to provide the necessary documents under FATCA and consent to comply with the requirements of applicable legislation on the taxation of foreign accounts in the form of JSC RKO "NODA," the Federal Law of June 28, 2014, No. 173-FZ stipulates the following consequences:
- If a client, whom the credit organization reasonably suspects to be a foreign taxpayer, does not provide information necessary for identification within a specified period, the credit organization may refuse to enter into a bank account (deposit) agreement or another agreement with the client.
- If the client does not provide information necessary for identification within a specified period after the decision to refuse transactions or does not provide consent (or refusal to provide consent) for information transfer to a foreign tax authority, the credit organization may terminate the concluded bank account (deposit) agreement or another agreement, notifying the client at least thirty working days before termination.
Additionally, in line with the global policy of JSC RKO "NODA," the bank cannot open new accounts or offer new products to clients who have refused to provide the required FATCA documents.
* CRS (Common Reporting Standard) is a standard for automatic exchange of financial account information developed by the Organization for Economic Cooperation and Development (OECD). In Russia, CRS is implemented through Federal Law No. 340-FZ of November 27, 2017, amending the Tax Code of the Russian Federation, and Government Resolution No. 693 of June 16, 2018, on the implementation of international automatic exchange of financial information. The purpose of CRS is to prevent global tax evasion using offshore jurisdictions and ensure information transparency.
To find current W-9, W-8BEN, W-8BEN‐E, W-8IMY forms, it is recommended to use the official website of the U.S. Internal Revenue Service: https://www.irs.gov/forms‐pubs
Criteria for classifying clients as a foreign taxpayer client and methods for obtaining the necessary information from them
Self-certification questionnaire for legal entities
Self-certification questionnaire for individuals and individual entrepreneurs