U.S.A.: FATCA: Clearstream Banking and LuxCSD due diligence update

20.04.2015

In accordance with the Intergovernmental Agreement (IGA) signed with their respective country of incorporation (Luxembourg, Germany and Singapore) and the United States (U.S.), Clearstream Banking1 and LuxCSD are proceeding with the mandatory due diligence exercise in relation to FATCA for all “pre-existing accounts”.

The objective of this exercise is to identify all direct account holders from a FATCA perspective and collect sufficient information in order to establish the FATCA compliance of each holder. This is independent from the source of investments held in those accounts.

Under IGA Model 1, this due diligence exercise must be finalized by 30 June 2016 at the latest. Beyond this date, all undocumented account holders will be considered as Non-Participating Financial Institutions (NPFFI), and reported as such.

Impact on customers

The due diligence requirements are either met through the ongoing U.S. tax certification renewal process or by provision of a self-certification.  More information about U.S. tax certification renewal process can be found on our previous announcements A14071, dated 16 May 2014, and A15030, dated 6 February 2015.

Self-certification is required for account holders that are either:

  • Financial institutions that are not required to provide U.S. certification for U.S. tax purposes as per announcements A14071 and A15030 and operate in a country that has not signed an Intergovernmental Agreement;
  • Non Financial Institutions that are not required to provide U.S. certification for U.S. tax purposes: or
  • Entities operating in the United States that have not provided U.S. tax certification.

Customers subject to FATCA self-certification will be contacted by their relationship manager as part of the KYC procedure and are kindly requested to only use the FATCA self-certification form2 in order to provide their FATCA status to Clearstream Banking or LuxCSD as appropriate.

Deadline to provide your FATCA status through self-certification is 30 June 2015.

Further information

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.

--------------------------------------------

1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.
2. The FATCA self-certification form is available in three versions, one for CBL, one for CBF and one for LuxCSD respectively.