FATCA and CRS Compliance

The Foreign Account Tax Compliance Act (FATCA) is a United States federal law enacted to combat surging tax evasion. The main objective of this act is to prevent non-compliant activities conducted by U.S. taxpayers using offshore financial accounts and corporate structures.

FATCA was originally introduced as a U.S. tax enforcement measure. Presently, this act extends its reach globally, significantly impacting global markets, non-U.S. entities, and individuals. As a trusted corporate service provider, Gryffin Capitalist is fully committed to maintaining compliance with FATCA as part of the services we provide to our clients. Non-resident US clients that have no U.S. tax obligations are not directly subject to FATCA standards. However, in special cases, they might be required to prove their non-US status during KYC or other compliance procedures.

FATCA imposes reporting obligations on Foreign Financial Institutions (FFIs) worldwide.  It requires them to identify the financial accounts of US individuals or entities and report the account information directly to the IRS department or the local tax authority. FFIs failing to comply will face a 30 percent withholding tax on U.S. source income and payments made to them.

Gryffin Capitalist is not a financial institution and is not responsible for managing financial accounts or providing banking or investment services of any kind. Our role is strictly introductory, i.e., we assist clients in understanding their compliance obligations and introduce them to the appropriate licensed financial institutions. The financial institutions we work with are required to comply fully with FATCA under their own regulatory obligations.

Common Reporting Standard (CRS)

The Common Reporting Standard (CRS) is the global counterpart to FATCA, enforced by the Organisation for Economic Co-operation and Development (OECD) in the year 2014. The CRS is an information standard for the automatic exchange of financial account information between tax authorities globally. It requires financial institutions to identify accounts held directly or indirectly by persons who are not tax residents in the country where they have opened their accounts.

Gryffin Capitalist's role in relation to CRS with compliant Financial Institutions is solely as introductory to our clients. We do not operate as a reporting financial institution under CRS. The financial institutions we introduce clients to are independently responsible for conducting CRS due diligence and making the applicable annual reports to their local tax authorities. Clients who are uncertain about their CRS tax residency status or about the reporting obligations are strongly advised to consult a qualified tax adviser in their country of residence before proceeding with any offshore company formation or bank account opening procedures.

Contact Us

If you have any queries about the FATCA and CRS policy or how it applies to your company arrangements, please contact our customer service desk at info@gryffincapitalist.com or call us on +971 502 354 550.