SIFMA Raises Concerns about FATCA FAQ Regarding New Account Self-Certification

In a letter to the Treasury Department, SIFMA commented on an FAQ issued by the IRS that considered whether financial institutions operating in IGA jurisdictions must obtain self-certifications from new individual account holders. In the guidance, also known as FAQ 10, the IRS advised that if a foreign financial institution cannot obtain a self-certification for a new individual account, it may not treat the account as a Reporting Account or open the account at all.

SIFMA noted that FAQ 10 conflicts with the guidance published by several jurisdictions with IGAs in place, including the United Kingdom and Canada, which allow such accounts to be treated as Reportable Accounts. Without taking a position on the correct interpretation of the applicable IGAs, SIFMA urged competent authorities in the United States and the other relevant jurisdictions to resolve any disagreements regarding the interpretation of the applicable IGAs and to provide financial institutions with sufficient time to comply with the new guidance.

See: SIFMA Letter. See also: FATCA Specialty Page (available to Cabinet subscribers only).