FATCA was signed into U.S. law in 2010 as part of the Hiring Incentives to Restore Employment Act of 2010 (“HIRE Act”). The legislation is concerned with improving tax information sharing, principally in respect of U.S. individuals that hold assets overseas.
As a FATCA requirement, Kleinwort Benson must review its client base in order to identify U.S. persons and potentially report annually any relevant information about accounts belonging to U.S. persons to the U.S. tax authorities i.e. the Internal Revenue Service (“IRS”). In order to lessen the administrative burden on non U.S. financial institutions, the IRS has allowed certain authorised non U.S. financial institutions to comply with FATCA by reporting information to their local tax authorities annually which will in turn transmit the information to the IRS.
Accordingly, Kleinwort Benson Bank Limited (“KBBL”) in the UK and Kleinwort Benson (Channel Islands) Limited (“KBCIL”) in Guernsey are each required to undertake enhanced due diligence procedures and to conduct pre-existing account searches for U.S. indicia to determine whether or not its account holders are U.S. persons. Where account holders are identified as U.S. persons, KBBL and KBCIL are further required to report information relating to such account holders and their accounts to their local tax authorities, who will then share this information with the IRS.
The list of the Group’s financial entities registered with the IRS for FATCA purposes and their corresponding GIINs are on the following Documents: