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Goal and Legal Framework of FATCA

Enacted in March 2010, the Foreign Account Tax Compliance Act (FATCA) was conceived as a means to ensure the collection of tax revenues for U.S. persons (US citizens or US residents) holding offshore accounts with Foreign Financial I nstitutions (FFIs). Broadly, this law imposes a new withholding and reporting regime upon all FFIs that invest directly or as an intermediary in U.S. assets.

Compliance of Cedrus Invest Bank SAL with FATCA Obligations

As part of Cedrus Group (CG), Cedrus Invest Bank SAL (CIB) is FATCA compliant, thus we have obtained the status of participating Financial Institution. The Global Intermediary Identification Number (GIIN) is:

  • Cedrus Invest Bank SAL– NIVZ7H.00000.LE.422
As for the Commercial bank, Cedrus Bank S.A.L. the GIIN is :
  • Cedrus Bank SAL - NIVZ7H.00001.ME.422

Consequences of FATCA for Clients
Dear Clients,

We have summarized hereunder some of FATCA’s provisions and the measures that we are obliged to take in this regard. However, as we are not experts in US taxation, we kindly advice the concerned parties to refer to the US Internal Revenue Service (IRS) and/or specialists that they deem appropriate and to act according to their guidance and recommendation. Therefore, we cannot be held liable towards anyone with respect to the understanding summarized below and to the measures that we might be required to take in the implementation process. Our esteemed concerned clients are required to contact our bank as soon as possible in order to comply with FATCA.

CIB has been putting in place a list of indicators of potential US tax payer client and regulatory compliance and tax transparency standards, enforced by a high Compliance professional team. CIB will contact all its clients. Individuals whose file contains one or several elements indicating they may be within the scope of this legislation, shall within a specified period, provide the bank with information and documents evidencing whether or not they are subject to US tax as per FATCA’s provisions, and such other information and documents that may be requested by the bank; whereby the bank will have to send them to the US tax authorities in case the client is a US tax payer. During the process, CIB will be collecting information allowing for the identification of American residents and citizens (including persons with a dual citizenship) who will have to provide their US Tax Identification Number and to waive the banking secrecy towards the US tax authorities and to authorize the bank to provide said authorities with the requested information and documents related to them, their accounts and their relations and operations with the bank.

CIB shall withhold, clients classified as “Recalcitrant Account Holder” as defined by FATCA, to the benefit of the US tax authorities, as percentage rate out of the clients’ proceeds which are subject to withholding as per FATCA, or close the clients’ accounts and terminate its relationship within 90 days, in any of the following cases:
  • Refusal or non-cooperation of the concerned client in providing the requested information and documents within the specified period of time;
  • Existence of any contradiction in the information and documents provided by the concerned client;
  • Refusal of the concerned client to waive the banking secrecy towards the US tax authorities
Our counterparties and clients which are Financial Institutions may register as a participating entity with the IRS. This will allow them to obtain a GIIN from the IRS. It allows Financial Institutions based in countries not covered by an Intergovernmental Agreement to avoid the FATCA withholding tax on US source income from financial products. This registration is also req uired for identification purposes as part of the Intergovernmental Agreements (IGA countries)

Staff Training and Communication
CIB ensures an ongoing training of the staff and the participation of the officers responsible for operation control and for training in relevant seminars, workshops and lectures, so that they may keep abreast of FATCA methods.