FATCA

Foreign Account Tax Compliance Act (FATCA) is a Tax Compliance Act on foreign accounts that was enacted into law in the United States of America in March 2010. It is intended to prevent that US taxpayers utilize financial accounts outside of the USA in order to evade taxes.

According to FATCA and in some countries with local regulations relating to FATCA, it shall require financial institutions to report annually certain accounts that American taxpayers maintain outside of the USA. These reports shall be made available to the Internal Revenue Service of the USA (IRS), either directly or through local regulatory agencies.

Financial institutions that fail to comply with FATCA regulations shall be subject to a withholding tax of 30%, applicable to various types of payments arising in the USA for its clients. In addition, countries that emit regulations aligned with FATCA, shall observe compliance through their own regulatory bodies.

In Continental Bank Corp. we intend to comply with all obligations under FATCA, in accordance with banking and tax regulations of our jurisdiction.

We suggest that you visit the IRS website for additional information on the subject.