Owner-documented Foreign Financial Institutions
Owner-documented Foreign Financial Institutions
This status enables the “Owner-documented FFI” (ODFFI) to delegate its FATCA reporting obligations to its bank, which is then responsible for reporting any information on US Persons to the IRS.
However, the ODFFI remains liable for any tax, interest and penalties resulting from a failure to meet its obligation under its ODFFI status or under any other FATCA obligations.
This status is obtained on the basis of an agreement between the Bank and the entity and is subject to fulfilment of the following conditions:
- The entity is an “investment entity” as defined for the purposes of FATCA.
- The entity should not be affiliated with a banking, financial or insurance group or act as intermediary.
- All of the entity's bank accounts must be held exclusively with financial institutions that are FATCA-compliant, such as Participating FFIs.
- The entity must provide the Bank, amongst others, with complete and exhaustive information on all of its US and non-US beneficial owners as well as the appropriate documentation required by FATCA: IRS Form W-9, a Consent to Report (if applicable) and/or IRS Form W-8BEN-E on each of its beneficial owners, whether US or not.
- The entity must immediately inform the Bank of any changes to its beneficial owners.
Given the administrative burden, this service will be provided in return for a fee, for a limited period, and
accepted by the
Bank if the
entity concerned
agrees to
provide complete
and exhaustive
documentation on
the entity and
its beneficial
owners as well
as notifying the
Bank of any
changes in this
respect.
