Foreign Account Tax Compliance Act
The Foreign Account Tax Compliance Act (FATCA) is a United States law requiring financial institutions around the world to collect and submit financial information to U.S. authorities on U.S. persons living outside of the United States. Canada has since made legislative changes to require Canadian financial institutions to become FATCA compliant. This requirement is now part of Canadian law.
Citizens Bank is a Registered Deemed-Compliant financial institution under FATCA and will comply with the law. We are also committed to protecting our customers privacy and will comply with privacy rules in all jurisdictions.
How FATCA works
Under an agreement made between the Canadian and U.S. governments, all financial institutions in Canada are legally required to collect and submit financial information on U.S. persons living outside of the United States. Citizens Bank and other Canadian financial institutions will begin gathering FATCA-related customer information as of July 1, 2014.
In accordance with the law, Citizens Bank submits the information to the Canada Revenue Agency (CRA), which then forwards this information to the U.S. Internal Revenue Service (IRS).
Is your privacy affected?
If you are a Citizens Bank customer, a non-Canadian resident and a U.S. person living outside of the United States, FATCA may affect you.
According to FATCA, you are considered a U.S. person if you are:
- A citizen of the U.S. (including those born in the U.S. but resident in Canada or another country, who has not renounced U.S. citizenship)
- A lawful resident of the U.S. (including a U.S. green card holder)
- A person residing in the U.S.
- An individual who spends a considerable amount of time in the U.S. on a yearly basis
PLEASE NOTE: This is not an inclusive list. Please consult a tax professional for advice on your personal situation.
U.S. corporations, estates and trusts may also be considered U.S. persons and some transactions may fall within the U.S. person definition, such as standing instructions to transfer funds to an account maintained in the U.S. and frequent transfer/receipt of funds from a U.S. country or territory.
FATCA regulations do not require financial institutions to collect and submit information for every type of account.
The account types and financial products below are exempt from FATCA:
- Registered Retirement Savings Plans (RRSPs)
- Registered Retirement Income Funds (RRIFs)
- Registered Disability Savings Plans (RDSPs)
- Tax-Free Savings Accounts (TFSAs)
- Personal accounts with a balance of less than USD$50,000
- Business accounts with a balance of less than USD$250,000
- Credit cards with credit limits of less than USD$50,000
- Prepaid cards with funds of less than USD$50,000
Our commitment to privacy
Ensuring customer privacy is a top priority for us and we continue to comply with privacy rules in all jurisdictions.
If you have a privacy concern or complaint, please call 1-888-708-7800 or email email@example.com.
For more information on FATCA, including FAQs and resources, please visit Canada Revenue Agency’s enhanced financial account information reporting page or the Canadian Bankers Association.
In addition to FATCA, U.S. persons are subject to additional American reporting and tax obligations on income and asset reporting, including filing annual tax returns and other information with the U.S. government. Please consult a tax professional about your obligations as a U.S. person living outside of Canada.