FACTA

Financial Institutions that must identify, and report on, certain of their accounts and account holders.

It is any legal person (such as an individual, or a corporation), or legal arrangement (such as a trust), that is not a US Person.

An FFI refers to any financial institution that operates as a foreign entity, excluding financial institutions organized under the laws of a U.S. possession.

It is, essentially, an NFFE that is not engaged in banking or investment activities, is not earning largely passive income, and does not largely hold passive assets.

Provide a completed IRS Form W-8BEN-E or other form of self-certification that includes information about any substantial US owners to withholding agents upon request.

The FATCA registration portal, a web-based application, is set to be deployed to oversee the necessary registrations, agreements, and certifications between entities obligated to comply with FATCA regulations and the IRS

The Account Holder is the person named as the owner of a financial account. However, if a person holds an account on behalf of another individual in roles such as an agent, custodian, nominee, signatory, investment advisor, intermediary, or legal guardian, and is not a Financial Institution, they are not considered the Account Holder. In a joint account, each person listed is considered an Account Holder.

The concept of a beneficial owner pertains to the individual who holds ownership of income for tax purposes and gains from it. Therefore, someone who receives income on behalf of another as a nominee, agent, or custodian does not meet the criteria to be considered the beneficial owner of that income.

A custodial account refers to an account established for the advantage of another individual, housing any financial instrument or contract intended for investment purposes on behalf of that individual.

An entity will be classified as a UAE Financial Institution if it falls under one of the following types :

(a) Depository Institutions

(b) Custodial Institution

(c) Investment Entity and

(d) Specified Insurance Company

A specified US person has a  broad scope and essentially cover any “US Person”,  defined as :

• A US citizen or resident individual
• A partnership or corporation organized in the US, or under the laws of the US (or any of its States); or
• trust, if, in general terms, a US court has jurisdiction over it and it is controlled by US persons.