Feb 19 2015

Foreign Account Tax Compliance Act (FATCA)


What is FATCA?

FATCA is the acronym for the Foreign Account Tax Compliant Act, which was enacted by the US in March 2010 for the purpose of detecting and deterring tax evasion by US persons who hold offshore accounts. The governments of Jamaica and the US have signed an Inter-Governmental Agreement (IGA) which requires that Jamaican Financial Institutions identify and report certain information to the US Internal Revenue Service (IRS) through the Tax Administration of Jamaica (TAJ).

What types of information will be reported to the TAJ?

The following types of information will be reported to the TAJ:-

üName, Address and US tax identification number of specified US persons*/recalcitrant members**

ü  Account number and balance as at the end of each calendar year or immediately before closure (if the account was closed during the year)

ü  Interest, dividends and any other income credited to the account

* Who are considered to be specified US Persons?

A person is classified as a US person, as long as they meet any of the criteria below:

  1. any citizen residing in the US
  2. a US green card holder
  3. a US passport holder
  4. a tax resident or person who have stayed in the US for several consecutive days (that is, 31 days during the current year and 183 days during the past 3 years

** Who are considered to be recalcitrant members?

A recalcitrant member is one who has failed/refused to provide requested information and/ documentation to the Financial Institution

Is there a Reporting Threshold to the TAJ?

Information will be reported for US persons whose account balances are greater than US$50,000 at the time of the reporting period.

What is meant by self-certification of residency for tax purposes?

This is the self-declaration of an individual that he/she resides at the specified address and is eligible to pay taxes in a specific country. Each member or potential member must complete this Self Certification of Residency Form and return it to the Credit Union.


In order to comply with the FATCA requirements and the IGA, N.C.B Employees Co-operative Credit Union Limited will be making some changes in the collection and documentation of the information necessary to satisfy our Know Your Customer (KYC) procedures.

Do you need additional information?

Further information relating to FATCA can be accessed at the IRS website at www.irs.gov/FATCA