Frequently Asked Questions
FATCA
1. When will the FATCA legislation become effective?
The FATCA legislation is currently due to become effective from 1 July 2014. RAKBANK is committed to becoming fully FATCA compliant as per the UAE Central Bank guidelines.
2. Is RAKBANK the only bank to be affected by FATCA?
No. All banks and other financial organization’s will be affected by FATCA.
3. Why are non-U.S. financial institutions complying with FATCA?
In countries that sign an agreement with the U.S. regarding FATCA, financial institutions will be required to comply with new local regulations related to FATCA.
4. Is FATCA applicable to Personal or Business customer?
FATCA legislation will impact both Personal and Business customers who have a relationship with RAKBANK.
5. How will you determine if I have “reportable accounts”?
Personal Accounts
If the information you have provided indicates that reporting may be required for your accounts, we will ask you to provide additional information — possibly in the form of new documentation regarding your U.S. tax status. We will then review the information you provide against the applicable requirements to determine whether or not your accounts are reportable.
Non-personal Accounts
If your business is of a type for which we are required to obtain additional documentation, we will ask you to provide that documentation. We will then review the new documentation against the applicable regulations to determine if your accounts are reportable.
6. I have an account in U.S. dollars. Does this mean my accounts will be reported to the IRS?
No, the currency of an account has no impact on whether or not it is treated as a “reportable account.”
7. Am I only affected if I am a citizen of the USA?
No. If an individual’s account holds any of the following seven criteria, RAKBANK may request further information / documentation to determine if you are a US person under FATCA.
- US citizenship or US residence
- US place of birth
- US mailing or residence address including US PO boxes
- US telephone number
- Standing instructions to transfer funds to an account maintained in the United States;
- Current Power of Attorney or signatory authority granted to a person with a US address;
- In care of or hold mail address which is the sole address for the account holder
8. What does FATCA mean for me if I am a US person?
If you are considered a US person , you may be asked to supply RAKBANK with additional information/documentation. You may also wish to visit the IRS website to determine if you need to complete and submit any additional IRS forms.
If you are a US person under FATCA, RAKBANK will be required to report information about you and your account on an annual basis.
While we will correspond with affected customers in due course, RAKBANK cannot offer any advice relating to FATCA, and we recommend you contact a professional tax adviser to discuss your personal tax situation.
9. What does FATCA mean for me if I am not a US person?
For most customers, FATCA will have minimal impact, and there will be no action required. However, RAKBANK may still contact you to confirm your status as a non-US person.
10. How are joint accounts handled under FATCA?
If at least one of the joint owners qualifies as a U.S. person, any required reporting would treat the U.S. person as the owner of the entire account.If more than one of the joint owners are U.S. persons, any required reporting would treat each U.S. person as the owner of the entire account.
11. Am I only affected if I am a US Company?
No. The impacts of FATCA are wider than just US companies. RAKBANK will be reaching out to many business customers to determine their status under FATCA. The aim of this exercise is to identify customers which are reportable under FATCA. We will be communicating with customers who need to take further action.
12. What do I need to do as a Business customer?
In order to establish your tax status under FATCA, we may need you to provide additional information / documentation. This documentation could be an RAKBANK declaration or a US tax form from the IRS. We will be communicating with affected customers that need to complete these forms, detailing when they will need to be completed by.
13. Why has my other bank asked for different documentation than RAKBANK?
The way in which banks and financial organization’s collect information from their customers in order to confirm their tax status under FATCA may vary. This may mean that in some instances you are asked for different documentation from RAKBANK than another bank.
RAKBANK cannot offer advice on your FATCA tax status or classification. If you need further support you should visit the IRS website or contact a professional tax adviser.
14. How frequently will I have to provide information for FATCA purposes?
FATCA is an ongoing process. If your account information changes, we may be required to contact you to obtain additional information/documentation so that we are able to update your account classification under FATCA.
15. What types of information and / or documents can I expect to supply to RAKBANK?
We will be communicating with the affected customers and provide full details of the information / documentation RAKBANK needs for FATCA purposes. Documents may include US tax forms (also referred to as withholding certificates or W forms) or self-declarations of FATCA status.
16. What will RAKBANK do if I do not provide the information required under FATCA?
RAKBANK is committed to be fully compliant with FATCA.
RAKBANK may chose not to open new accounts or offer additional products and services to customers who choose not to comply with RAKBANK’s requests for documentation to establish a customer’s status under FATCA..
RAKBANK may also need to report information about customers who do not provide the required documentation to us.
17. I already have a W-9 [or W-8] form on file with RAKBANK. Why are you asking me to provide another one?
Each of RAKBANK’s business lines will need to obtain FATCA-related client documentation. Despite our best efforts to streamline this process, you may be contacted by more than one business line regarding this documentation. We apologize for any resulting inconvenience, and we greatly appreciate your patience.
18. Where can I go for more information?
If you want advice on how to respond to questions and requests related to FATCA, we suggest that you speak with a professional tax advisor. Detailed information on FATCA can be found at www.irs.gov/FATCA.