‘FATCA FAQ 10 Letter

SIFMA provides comments to the Treasury regarding the FATCA frequently asked question issued February 2, 2015 by the IRS regarding whether financial institutions operating in intergovernmental agreement jurisdictions are permitted to open new individual accounts without obtaining a self-certification from such account holders, known as FAQ 10.

Our members greatly appreciate the Treasury Department’s willingness to respond to the concerns of our members in past guidance, including, inter alia, the decision to delay certain FATCA implementation deadlines originally scheduled for to go into effect on July 1, 2014, the two year forbearance period in which penalties will not be assessed against financial institutions making a good faith effort to comply with FATCA; the delayed implementation of FATCA’s pass-thru payment and gross proceeds withholding requirements; and the IGA process itself. Nevertheless, our members have serious concerns about the manner in which FAQ 10 was adopted and its inconsistency with local guidance published in several Model 1 IGA jurisdictions.