FATCA Compliance?


#1

Apologies if this has been asked somewhere before or is in an FAQ I may have missed, but has Monzo thought about FACTA compliance for American account holders (in the UK) once full bank status is achieved? Thanks!


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(Alex Sherwood) #2

In case anyone else is wondering what FACTA compliance is, it looks like it’s now known as Automatic Exchange of Information & here’s the UK government’s guidance -

https://www.gov.uk/government/publications/foreign-account-tax-compliance-act-registration-guidance-fatca


#3

Automatic Exchange of Information also applies to residents of Isle of Man, Guernsey, Jersey etc so even if they apply for an account as resident in the UK if for part of the year they are resident in one of those islands UK financial institutions have to provide data on their financial accounts via the HMRC


(Dillon) #4

Yes, we certainly have! We plan on being FATCA compliant with the full current account. We definitely wouldn’t want to exclude any of our lovely Monzonauts from :us: ! Luckily the Automatic Exchange of Information agreement makes compliance a bit easier :ok_hand:


#5

Ah, good to hear, thanks!


(Neil Archibald) #6

Hey Dillon, was thinking about this today and had to search the forums for an answer. Totally not a sales pitch because I’m not in sales but how do you plan on reporting for fatca? Just because I work on a fatca product in my current role and was brainstorming about new emerging fintech companies and how they plan to report on this whether it be manually or through a purchased software solution! Keen to hear about your plans if any!
Cheers.


(system) #7

This topic was automatically closed 180 days after the last reply. New replies are no longer allowed.


#8

even where some firms are set up for reporting some still decline to accept those citizens due to the size of the possible US fines and their inability to obtain insurance cover for that risk at a reasonable price. A potential fine for breach of the American requirements is sufficient to adversely impact a company so badly it folds up or has to be taken over to survive.


(Allie) #9

I’ve heard this, and it makes absolutely no sense. Unless a company has assets in the US, the US has no jurisdiction here whatsoever. The US can’t fine a British company for breaking US law, that’s absurd to even think about. All they could do is seize assets in the US.


#10

No they can also arrest directors of the bank / company if they enter the US (be it on business or holiday) for their firm’s breach of US law.

Also Monzo have discussed providing banking in the US at some point and any breach of US law could therefore impact them later.


(Allie) #11

Seriously? Isn’t a company a distinct entity from its employees?


#12

The US have fined Russian and German companies in absentia for breaking US law with the aim of one day seizing assets even though not currently possible so while absurd the Yanks will fine them even when no immediate possibility of being paid.


#13

I wouldn’t bet on it.

The US has form for arresting the directors of companies involved in gambling / betting. This has happened a number of times.


#14

Yes of regular employees but not of ‘officers’ i.e. Directors.

That is why a couple of insurance companies in UK who have contravened US laws without breaking any UK ones have cautioned senior staff against travel to the US.


(knows someone who knows Tom quite well) #15

The US have also been known to grab people in foreign countries and stick them on planes in handcuffs.

(Generally they consider everybody anywhere to be subject to their laws)


( related to Monzo CEO, Investor in Monzo ) #16

Ali all joking aside maybe this will now be getting offensive to some people ?


(Sufi) #17

I am sorry but there was no offence intended and I fail to see an offence with a little gif and calling US a world police :thinking:


(Allie) #18

That’s just crazy… wow.

Umm, what does the word jurisdiction mean to them then?


(Geoff Pascoe) #19

I don’t really think it is. Sure for this particular issue it may seem over the top, but not for all. Imagine for example, that a European company knowingly included a carcinogenic substance in foods they exported to the US, which caused the loss of life. Would you not want the directors to be able to be held liable for that?

I think it’s crazy that the US requires US persons to pay tax even if living and working in another country, and I think it’s crazy that they expect foreign companies to report on that. The principle, however, of holding directors responsible for the actions of a company, seems reasonable to me.


(Allie) #20

Of course I would, but I’d want them to be held liable here where they are citizens and live and have the right to a fair trial. Not in a random foreign country they have no connection to!