According to the legal provisions in force, the financial institutions have the obligation to deliver to the competent tax authority – A.N.A.F. (National Agency of Fiscal Administration) information regarding the resident taxpayers of the states with which Romania was committed through a legal instrument of international law.
Thus, in consideration of:
- the provisions of the Law 233/2015 on the ratification of the Agreement between Romania and the United States of America for the improvement of the international tax compliance and for the implementation of FATCA (Foreign Account Tax Compliance Act), signed in Bucharest on May 28th, 2015, published in Official Journal, Part I, no. 808 bis of October 30th, 2015;
- the provisions of Art. 62 of the Law 207/2015 on the Code of Fiscal Procedure;
- the provisions of the Governmental Emergency Ordinance to prorogue the term provided in Art. 62 paragraph (3) of the Law no. 207/2015 on the Code of Fiscal Procedure;
- the provisions of the Law no. 70/2016 on the ratification of the Multilateral Agreement of the competent authorities for automatic exchange of information regarding the financial accounts, signed in Berlin, on October 29th, 2014, published in the Official Journal, Part I, no. 238 of April 28th, 2016;
- the provisions of the order of MFP (The Ministry of the Public Finances) 1939 published in the Official Journal 648/24.08.2016.
We inform these:
- The loan institutions annually report to A.N.A.F. financial information regarding the accounts open and/or closed by the resident taxpayers of the states with which Romania was committed through a legal instrument of international law in such a information exchange;
- If you are a resident taxpayer of a state with which Romania was committed through a legal instrument of international law regarding the accounts open and/or closed by you at CEC BANK S.A., there will be reported to the tax authority within A.N.A.F. the required information provided in the legal regulations above mentioned;
- The mentioned information is reported to the tax authority within A.N.A.F., it will be used by this one only for the information exchange regarding the resident taxpayers of the states with which Romania was committed through a legal instrument of international law and for the improvement of the international tax compliance and with the compliance of the dispositions of Art. 11 of the Code of Fiscal Procedure on the Tax Secrecy;
- The final term of reporting, for the data related to the years 2014 and 2015 is 31/08/2016;
- You benefit from the rights provided by the Law no. 677/2001 for the protection of the individuals regarding the processing of the personal data and the free circulation of these data, with subsequent amendments, specially the right of access to data, of information, of intervention on the data and of opposition, the right of not being subject to an individual decision, the right of address to the National Authority of Supervision of the Personal Data Processing or to the Justice, rights which can be exercised within the legal limits. For the exercising of the mentioned rights, you shall transmit to CEC BANK S.A. a written request, dated and signed where you shall mention the full name and minimum data for identification, as well as the modality you want the information to be communicated (electronic mail or through mail service ensuring the delivery to be made only personally).
Further information can be found accessing the following links:
What FATCA is?
FATCA (Foreign Account Tax Compliance Act) is the acronym for the USA Law called the Foreign Account Tax Compliance Act, which requires the foreign financial institutions (registered in a country other than USA) to report the American customers, including those living out of the borders of USA, to the Internal Revenue Service (IRS).
Which is FATCA purpose?
FATCA (Foreign Account Tax Compliance Act) represents a set of compulsory actions ordered by the American Tax Authority to fight against the tax evasion of the American natural and legal persons in connection with the accounts held out of USA. To this purpose, the foreign financial institutions are required to adhere to an agreement with the US Tax Authority (IRS), based on which they undertake to identify and obtain information with regard to the customers who could be classified as American customers, according to special criteria, generally called “US indicia”. Such information are needed to establish who are the reportable US customers.
Which the US indicia are?
The US indicia are information provided by customers, able to lead to the classification of a natural or legal person owned / controlled by a shareholder/effective beneficiary as being person subject to FATCA provisions.
Those indicia include:
- Permanent US citizenship or residence (requiring holding of a Green Card allowing US residence),
- Birth place in USA,
- Current address (domicile, residence, postal) in USA,
- Single address is under the form of assisted or general delivery address,
- A phone number in USA,
- A Power-if-attorney or signature authorization given to a person with (domicile, residence or postal) address in USA,
- Recurrent payment orders from a CEC BANK S.A. account to an US account.
Identification of one of those indicia shall not immediately result in the classification of the concerned person as US person, to this end being required a confirmation of the information through a document, upon the bank request. The document shall be timely submitted, the related deadline being also notified by the bank.
Since when does FATCA apply?
FATCA shall be applied starting with 1st July 2014.
Who shall be affected by FATCA?
FATCA shall affect any natural or legal person from USA or out of USA. The Foreign Financial Institutions („FFI”) shall be the most affected entities because they shall comply with FATCA or shall pay a penalty of 30% to be applied to certain US income sources.
May an US Law be compulsory for Romania?
Romania, as many other European countries, has decided to conclude the Inter-governmental Agreement („IGA”) to make FATCA enforceable under our domestic law. IGA related negotiations are in progress. In such context, banks have an established deadline to register on IRS Portal and to obtain the Global Intermediary Identification Number (GIIN).
Is CEC BANK S.A. stricter than other banks in enforcing FATCA?
No. FATCA is applicable to all Foreign Financial Institutions (”FFI”) out of USA as well as to other financial intermediaries. If CEC BANK SA does not comply with FATCA provisions, all the Bank cashing and Bank’s customers’ cashing coming from transactions made/initiated in USA, as well as the dividends and interests paid by the American corporations would be subjected to 30% withheld. Therefore, CEC BANK SA, as other banks in Romania, decided to implement the changes required by FATCA. The customers identified as US Persons shall be reported to IRS starting with 2015.
Which is the information to be reported to IRS?
More details about reporting shall be available after IGA signature by the Government of Romania and US Treasury Department.
Does CEC BANK S.A. intend not to accept US natural persons as customers because of FATCA requirements?
US natural persons are and will be welcomed to CEC BANK SA as long as they agree with the compliance with FATCA requirements, to which our Bank adhered.
When are you deemed US Person?
You are deemed US Person if: a) you are US citizen; b) you are permanent resident in USA; c) you are holder of Green Card released by US Authorities. You are US citizen if: (i) you are borne in USA; (ii) you obtained US citizenship. The list of the above mentioned criteria is not a full list. For more details, please visit the website www.irs.gov and check there if you comply with the US Person status and/or US resident status to tax purposes.
What US, USA or the United States of America does it mean?
- The United States
- The remote small islands of USA
- The Northern Mariana Islands
- Puerto Rico
- The US Virgin Islands
- The American Samoa
What W-9 Form does it mean?
The W-9 Form is used only by the US Persons.
What W-8BEN Form does it mean?
The W-8BEN Form is intended to identify the effective beneficiaries of non-US accounts and transactions. It is used only by natural persons. The legal persons are required to use the W-8BEN E Form.
What W-8BEN E Form does it mean?
The W-8BEN E Form is intended to identify the legal persons or the Foreign Financial Institutions (FFI) out of USA which are the effective beneficiaries of accounts or transactions. It is used only by legal persons or Foreign Financial Institutions. The natural persons are required to use the W-8BEN Form.
FQA of customers with regard to FATCA enforcement
I am CEC Bank SA customer and I was contacted by the Bank because I provided details of US indicia nature. Am I required to provide the Bank with the requested documents for clarification?
It is recommended the submission of the requested documents to clarify your status. If you do not file the corresponding forms you will be deemed a non-documented customer according to FATCA. CEC BANK S.A. will report your accounts.
I consider that information in CEC Bank SA database is not updated and I have no connection with USA. What can I do to remedy such case?
In such circumstances, please come to one of the CEC BANK SA units to clarify the case.
I am holder of a Romanian passport and a US passport but I live and work in Romania and I use my US passport only for business or holiday travels in US. Am I considered an US Person?
Yes. You have double citizenship, Romanian and American. Therefore, you are deemed US Person.
My daughter is US student and I have payment orders to transfer monthly certain amounts of money into her accounts from there. Does my account opened with CEC BANK SA fall under FATCA?
Payment orders to an US account are deemed US indicia. In order not to be reported according to FATCA, you must provide additional documentation/certificates.