Glossary · compliance

FATCA

Also known as: Foreign Account Tax Compliance Act

Definition
FATCA is US legislation requiring foreign financial institutions to report financial accounts held by US persons (citizens, green-card holders, US-tax-resident individuals) to the US IRS. Singapore signed a Model 1 IGA with the US in 2014.

Every Singapore private bank and licensed fund manager must complete FATCA due diligence on account opening and report US-person accounts annually via IRAS to the US IRS. Singapore's Model 1 IGA structure means the SG bank reports to IRAS, which then forwards to the IRS. US-person clients face additional disclosure documentation; some banks decline US-person business entirely.

Source: IRAS FATCA

Related

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