Final step! Are you in compliance for year-end deadlines?
FATCA – The Responsible Officer must certify his institution’s compliance to the IRS by December 15, 2018
By signing an FFI agreement with the IRS, Monaco’s FFIs (Foreign Financial Institutions) have committed to appointing a Responsible Officer (RO) in charge of periodically certifying their institution’s compliance with FATCA rules. Just over three years after the signing of this agreement, the time has come for the first certification.
For this first, two certification must be submitted on the IRS Portal before the end of the year:
– The certification relating to the review of pre-existing accounts (COPA), in which the RO will have to:
- Either certify that the FFI has completed the review and classification of all pre-existing accounts (i.e. opened before July 1, 2014),
- Or describe the corrective action plan that the FFI has implemented in order to comply with this obligation.
– The periodic certification, in which the RO must :
- Either certify that the FFI has implemented internal controls to ensure compliance with FATCA obligations, and that no material failure or event of default has been identified or remedied,
- Or describe all the failures and breaches identified, together with the corrective actions that the FFI has implemented or will implement to remedy the situation and prevent recurrence.
Find out more:
– Frequently asked questions published by the IRS
– Preliminary versions of certifications
CRS – All pre-existing accounts must be reviewed and classified by December 31, 2018
The review of low-value* pre-existing accounts** of individuals and pre-existing accounts of entities will have to be completed before the end of the year.
By December 31, 2018, RMFIs (Reporting Monegasque Financial Institutions) must have obtained a self-certification from each of their client entities, and verified its admissibility.
In the case of low-value pre-existing accounts held by individuals, RMFIs may :
- Apply the test based on the current address of residence, or
- Search for indications of foreign residence, and obtain a self-certification from the customer if necessary.
CRS reporting for 2019, based on 2018, will thus be the first complete reporting, i.e. concerning all reportable clients of IFMDs.
*Financial accounts with an aggregated balance of less than USD 1 million at December 31, 2016.
**Financial accounts opened before January 1, 2017.
Phoenix Consulting Monaco – We’re here to support you
Our team is at your disposal to answer any questions you may have, or to define a support service tailored to your needs.
Examples of possible assistance services:
- FATCA/CRS Helpdesk (provision of expertise and analysis of practical cases)
- FATCA pre-certification (compliance review and definition of remediation plans)
- Intermediation service with the IRS
- Provision of resources for CRS self-certification review
- Assistance with internal and external communication for the collection of CRS self-certifications
- Intermediation service with the Monegasque Tax Authorities (Direction des Services Fiscaux)