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Thursday, November 5, 2015

New Requirements from 1st November 2015 FATCA-CRS-UBO

In terms of the MCAA, all countries which are a signatory to MCAA, are obliged to exchange a wide range of financial information. India has joined MCAA on Automatic Exchange of Financial Account Information on June 3, 2015. Additionally, Governments of India and USA have signed an agreement to improve international tax compliance and to implement the FATCA in India.
Further, to combat the problem of offshore tax evasion and avoidance and stashing of unaccounted money abroad requiring cooperation amongst tax authorities, the G20 and OECD countries worked together and have developed a Common Reporting Standard (CRS) on Automatic Exchange of Information (AEOI).
As per above agreements and towards compliance with tax information sharing laws, such as FATCA/CRS, requires the financial institutions of the “source” jurisdiction to collect and report information to their tax authorities about account holders “resident” in other countries, such information having to be transmitted “automatically’ on yearly basis. The information to be exchanged relates not only to individuals but also to shell companies and trusts having beneficial ownership or interest in the “resident” countries. This also mandates all financial intermediaries to seek additional personal, tax and beneficial owner information and certain certifications and documentation from our account holders. Intermediaries are also obliged to share information on your account with relevant tax authorities and other competent authorities.
Vide SEBI Circular CIR/MIRSD/2/2013 dated January 24, 2013, SEBI has guidelines on identification of Beneficial Ownership and mandated all Intermediaries to identify & verify such beneficiary owners
Following information is mandated as part of FATCA-CRS-UBO requirements and also additional Supplementary KYC Information as per AMFI guidelines:
  1. 1. Country of Birth / Incorporation
  2. 2. Place of Birth / Incorporation
  3. 3. Address Type [Residential or Business, Residential, Business, Registered Office] for the KYC registered address
  4. 4. Occupation
  5. 5. Applicant Income details
  6. 6. Net Worth details
  7. 7. Details of PEP [Politically Exposed Person]
  8. 8. Information on specific Corporate services [applicable for Non-Individuals]
  9. 9. Information about Ultimate Beneficiary Owner(s) / Controlling Person(s) [applicable for select category of Non-Individuals]
  10. 10. If your [customer] tax residency is other than India, then following information for all countries in which you are resident for tax purposes is required:


Country of Tax Residency [also include USA, where the individual is a citizen / green card holder of The USA]
Tax Identification Number [If not available, kindly provide its functional equivalent]
Identification Type [TIN or Other, to be specified)]
All investors [both Individuals and Entities] are required to fill-up the applicable FATCA-CRS Declaration &-Supp. KYC Information Form and submit to Fund/CAMS for update. For more details, refer the following forms and FAQs



New Requirements from 1st November 2015
Towards compliance with tax information sharing laws, such as FATCA/CRS, all financial intermediaries are mandated to seek additional personal, tax and beneficial owner information and certain certifications and documentation from account holders. They are also obliged to share information of your account with relevant tax authorities and other competent authorities.
Vide SEBI Circular CIR/MIRSD/2/2013 dated 24th January 2013, SEBI has issued guidelines on identification of Beneficial Ownership and mandated all Intermediaries to identify and verify such beneficiary owners.
Vide AMFI Circular dated 18th September 2015, following information has been made mandatory w.e.f. 1st November 2015 for new investors to the respective Fund/from 1st January 2016 for the existing investors
Additional KYC Information
Ultimate Beneficiary Ownership [UBO] declaration from Non-Individuals
Accordingly, following information is mandated as part of the above requirements:
Country of Birth/Incorporation
Place of Birth/Incorporation
Address Type [Residential or Business, Residential, Business, Registered Office] for the KYC registered address
Occupation
Applicant Income Slab details
Net Worth details
Information about PEP [Politically Exposed Person & its relatives]
Information on specific Corporate services [applicable for Non-Individuals]
Information about Ultimate Beneficiary Owner(s)/Controlling Person(s) [applicable for select category of Non-Individuals]
If your [investor] tax residency is other than India, then following information for all countries in which you are resident for tax purposes is required:
Country of Tax Residency [also include USA, where the individual is a citizen/green card holder of the USA]
Tax Identification Number [If not available, kindly provide its functional equivalent]
Identification Type [TIN or Other, to be specified)]
All investors [both Individuals and Entities] are required to fill-up the applicable FATCA-CRS Declaration and Supplementary KYC Information and UBO Declaration Form and submit to CAMS/CAMS serviced Mutual Fund AMC branches for update.

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