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Financial Institutions Register with FATCA: A Guide

The Foreign Account Tax Compliance Act (FATCA) requires financial institutions (FIs) to register with the Internal Revenue Service (IRS). This article provides a step-by-step guide on how FIs can register with FATCA.

What is an EAG?

An Expanded Affiliated Group (EAG) is a group of related FIs that may have multiple Lead FIs. A Lead FI is responsible for managing the online account for its Member FIs and carrying out FATCA registration for the group.

Types of FIs

There are four types of FIs:

  • Single FI: An individual FI that registers with FATCA on its own behalf.
  • Lead FI: An FI that acts as a lead for an EAG, managing the online account for its Member FIs and carrying out FATCA registration.
  • Member FI: A member of an EAG that is not acting as a Lead FI. The Lead FI will manage their online account and carry out FATCA registration on their behalf.
  • Sponsoring Entity: An entity that sponsors one or more FIs.

How to Register with FATCA

To register with FATCA, follow these steps:

  1. Create an account: Choose an Access Code and the system will assign a FATCA ID. Record your FATCA ID and Access Code for future use.
  2. Complete Part 1 of the online FATCA registration form (Form 8957).
  3. Complete Part 2 or Part 3, depending on your FI type:
    • Single FI: Complete Part 1 only.
    • Lead FI: Complete Part 1 and Part 2.
    • Member FI: Complete Part 1 and enter the FATCA ID and Temporary Access Code provided by your Lead FI.
  4. Electronically sign and submit your registration form on or after January 1, 2014.
  5. Wait for registration to be processed.
  6. Upon approval, you will receive a notification and GIINs (Global Intermediary Identification Numbers) will be assigned to your FI and any non-Limited Branches.

Key Steps for Each Type of FI

The table below summarizes the key steps for each type of FI:

FI Type Key Steps
Single 1-4, wait for registration to be processed, receive notification and GIINs.
Lead 1-5, complete Part 2, give Member FIs their FATCA login information, wait for registration to be processed, receive notification and GIINs.
Member 1-3, enter online system with FATCA ID and Temporary Access Code provided by Lead FI, create new Access Code, record FATCA ID and Access Code for future use, wait for registration to be processed, receive notification and GIINs.
Sponsoring Entity 1, complete relevant questions in Part 1 of the online FATCA registration form (Form 8957), select None of the Above for Question 4, Not applicable for Question 6, and No for Question 7, then skip to Question 10.

By following these steps, FIs can register with FATCA and comply with the requirements of the Foreign Account Tax Compliance Act.