23rd May 2014
Prudential: Foreign Account Tax Compliance Act (FATCA)
The Foreign Account Tax Compliance Act (FATCA) is a US law aimed at reducing tax evasion by US citizens using foreign accounts. It requires foreign financial institutions (FFIs), to tell the U.S. Internal Revenue Service (IRS) about US account holders' offshore accounts.
The UK and Ireland have each entered into agreements with the US to implement FATCA. Alongside this, the UK has also entered into agreements for exchange of information with its Crown Dependencies and Overseas Territories which operate in a similar way to US FATCA. The term "FATCA" may commonly be used to refer to all of these agreements, although strictly it refers to the US part only.
From 1st July 2014, Pru UK will be required to report information to HMRC, and Prudential International will report to the Irish Revenue Commissioners about certain reportable accounts held by US citizens and entities within their institutions.
From 1st July 2014, Pru UK will also be required to report information to HMRC about reportable accounts held by residents of Jersey, Guernsey, Isle of Man and Gibraltar.
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