To prevent identity theft, fraud, money laundering and terrorist financing, Know Your Customer (KYC) polices are increasingly important globally. Today’s business environment is without margin for error, with heavy emphasis on maintaining ethical standards and meeting requirements outlined by regulatory institutions.
We offer an integrated solution that enables firms to be compliant with KYC regulations and manage the associated non-compliance risks. We reduce your compliance burden by providing background checks on individuals and legal entities, as well as document management systems (the Amicorp Compliance Portal).
We improve your level of risk management, for small, medium and large businesses in various sectors. You will benefit immediately from:
- A complete and efficient identity verification system
- Self-sustaining electronic document management
- A comprehensive risk management system
- An experienced compliance department
US FATCA and OECD CRS Compliance Services
Developments to Global tax Transparency will impact investment structures in foreign financial assets. You may hold one or more non-US entities with investment accounts either maintained with US banks or non-US banks, which under the Foreign Account Tax Compliance Act (FATCA) or Intergovernmental Agreements (IGA’s) may have to be classified as a Foreign Financial Institution, category Investment Entity (FFI). Registration of FFI’s becomes an important component in complying with the existing FATCA provisions.
This classification as FFI impacts not only mutual funds and trusts with corporate trustees, but also many offshore Private Investment Companies (PIC’s) with a discretionary mandate granted to investment managers, which are to be classified as FFI-Investment Entities.
Amicorp continues to maintain close monitoring of FATCA and IGA regulations and we are well-positioned to:
- Determine the initial classification of an entity as an FFI or Non-Financial Foreign Entity (NFFE) under the FATCA regulations or IGA’s;
- Register the entity classified as FFI with the US Internal Revenue Service (IRS) and obtain a Global Intermediary Identification Number (GIIN);
- Prepare the relevant “W8” Forms or self-certificates to establish the FATCA status of the entity to the banking institutions.
Entities that are not classified as FFI have to be identified as NFFE’s, either Active or Passive NFFE. For such NFFE’s we prepare the necessary certification documentation required by the banking institutions and withholding agents, including the due diligence of substantial US owners or controlling US persons as connected to the entity.
FATCA is just the beginning. Upon instruction of the G20 countries, the OECD developed a global standard of Automatic Exchange of Information of Financial Accounts. Already more than 90 jurisdictions committed to introduce these Common Reporting Standard (CRS) as of 2016 or 2017.
CRS will impose due diligence and reporting obligations on financial institutions similar to FATCA, but now it comes to bank accounts owned by residents of any CRS Participating Jurisdiction. Financial institutions will even be required to look through certain investment entities established in non-CRS jurisdictions in order to identify and report on the relevant controlling persons who are resident of CRS Participating Jurisdictions.
Information on investment income and balances of bank accounts will be reported by the financial institutions to the local tax authorities, which will automatically exchange such information to the applicable tax authorities of other CRS Participating Jurisdictions that will use the same information to check the income declared by the individual taxpayers in their local tax returns.
Amicorp continues to maintain close monitoring of CRS also and will be well-positioned to perform similar CRS compliance services as mentioned above for FATCA and IGA’s.