ARTICLE
FATCA: The Central Bank Updates Consolidated Regulations Regarding International Tax Cooperation
By Communication “A” 5588, the Central Bank of Argentina updated its consolidated regulations to include the legal procedure through which financial entities must identify their clients reached by provisions of FATCA and the OECD Standard.
June 30, 2014
Within the framework of international tax cooperation and in accordance with the provisions set forth in Communication “A” 5581, the Central Bank of Argentina (“CBA”) issued Communication “A” 5588 on June 5, 2014.
Through such Communication, the CBA updated its consolidated regulations regarding “Checking accounts in cooperative credits”, “Saving deposits, bank accounts for the payment of wages and universal and specific charge fee accounts”, “Term deposits and investments”, “Rules on checking accounts” to require financial entities to take necessary measures to identify account holders reached by Foreign Account Tax Compliance Act (FATCA) and the Organization for Economic Cooperation and Development (OECD) Standard for Automatic Exchange of Financial Account Information.
Specifically, financial entities must now include the following information in the files of their clients affected by FATCA and the OECD Standard:
(i) Regarding individuals, information about nationality, place and date of birth, country of tax residence and tax identification number and address, including relevant supporting documentation.
(ii) Regarding legal persons and other entities, information about country of tax residence and tax identification number and address in such country.
Furthermore, Communication “A” 5588 clarifies that the scope and definitions of reached clients, accounts and required information, as well as due diligence procedures, shall be understood according to the terms of the document “Standard for Automatic Exchange of Financial Account Information - Common Reporting Standard,” approved by OECD.
Communication “A” 5588 reaffirms that financial entities must comply with the banking secrecy duties set forth in Section 39 of Financial Entities Law No. 21,526, as amended, and Section 5, subsection 2.(e) of Personal Data Protection Law No. 25,326, as amended.
Finally, the Communication states that all information regarding reached clients must be filed with the Argentine Tax Authority (Administración General de Ingresos Públicos - AFIP), in accordance with the rules to be issued by such Authority.
Through such Communication, the CBA updated its consolidated regulations regarding “Checking accounts in cooperative credits”, “Saving deposits, bank accounts for the payment of wages and universal and specific charge fee accounts”, “Term deposits and investments”, “Rules on checking accounts” to require financial entities to take necessary measures to identify account holders reached by Foreign Account Tax Compliance Act (FATCA) and the Organization for Economic Cooperation and Development (OECD) Standard for Automatic Exchange of Financial Account Information.
Specifically, financial entities must now include the following information in the files of their clients affected by FATCA and the OECD Standard:
(i) Regarding individuals, information about nationality, place and date of birth, country of tax residence and tax identification number and address, including relevant supporting documentation.
(ii) Regarding legal persons and other entities, information about country of tax residence and tax identification number and address in such country.
Furthermore, Communication “A” 5588 clarifies that the scope and definitions of reached clients, accounts and required information, as well as due diligence procedures, shall be understood according to the terms of the document “Standard for Automatic Exchange of Financial Account Information - Common Reporting Standard,” approved by OECD.
Communication “A” 5588 reaffirms that financial entities must comply with the banking secrecy duties set forth in Section 39 of Financial Entities Law No. 21,526, as amended, and Section 5, subsection 2.(e) of Personal Data Protection Law No. 25,326, as amended.
Finally, the Communication states that all information regarding reached clients must be filed with the Argentine Tax Authority (Administración General de Ingresos Públicos - AFIP), in accordance with the rules to be issued by such Authority.
This insight is a brief comment on legal news in Argentina; it does not purport to be an exhaustive analysis or to provide legal advice.