Foreign Account Tax Compliance Act 2010 (FATCA) and Common Reporting Standard (CRS)
Foreign Account Tax Compliance Act 2010 (FATCA) is intended to capture United States (U.S.) person’s account information and report to U.S. Internal Revenue Service (IRS) that may be investing and earning income through non-U.S. institutions.
Similar to FATCA, Common Reporting Standard (CRS) is a global standard introduced by the Organisation for Economic Co-operation and Development (OECD) for the automatic exchange of financial information between jurisdictions that have agreed to participate.
Hence, Financial Institutions (FI) are required to perform due diligence on account holders and identify non-residents and report to Inland Revenue Berhad Malaysia (IRBM) or U.S. IRS those information relating to the Reportable Jurisdictions.
Under the FATCA / CRS rules, we are required to collect information on the country of tax residence of our customers.