The Foreign Account Tax Compliance Act (FATCA), was passed by the United States (US) Congress on 18 March 2010 as part of the HIRE Act. FATCA requires that certain Foreign Financial Institutions and certain other Non-Financial Foreign Entities report on financial accounts and/or foreign assets held by U.S. persons or by foreign entities in which U.S. persons hold a substantial ownership interest or be subject to withholding on withholdable payments. FATCA is an important development in U.S. efforts to combat tax evasion by U.S. persons holding accounts and other financial assets offshore.

The term “United States person” means

• A United States citizen (including dual citizens);
• A United States resident for tax purposes;
• A partnership or corporation organized in the United States or under the laws of the United States or any State thereof;
• Any estate other than a foreign estate;
• Any Trusts if:
  1. That a court within the United States can exercise primary supervision over the administration of the trust; and
  2. Where one or more United States persons have the authority to control all substantial decisions of the trust.
• Any other person that is not a foreign person

Foreign Financial Institutions (FFIs) are institutions that:

• Accept deposits in the ordinary course of a banking or similar business.
• As a substantial portion of its business, holds financial assets for the account of others.
• Are engaged (or holding itself out as being engaged) primarily in the business of investing.
• Are involved in reinvesting, or trading in securities, partnership interests, commodities, or any interest in such securities, partnership interests, or commodities.

• In the case of the United States, the Secretary of the Treasury or his delegate; and
• In the case of Anguilla, the Comptroller of Inland Revenue or his delegate.

New and existing customers will be required to provide the FFI with information to determine whether they are U.S. persons. All customers will be subject to an electronic perusal of their account information. This perusal seeks to determine which accounts have US indicia. US indicia include whether a customer is a U.S. Person. It also includes the use of a United States address, Post Office Boxes and United States telephone number(s). If these basic levels of indicia are identified, the customer will be required to disclose their legal name, address, and Tax Information Number (TIN). This information, as well as the account number, the account balance and the gross receipts and gross withdrawals or payments from the reportable account will be exchanged between the Competent Authorities annually.

Account Holders failing to provide sufficient information about the identity of its substantial U.S. owners or U.S. persons who do not disclose the requisite information to an FFI will have their accounts flagged as non-compliant. The FFI will be required to eventually close the account if the information is not received within a specified period of time. Until the closure of the account, a 30% levy will be applied to any payment of interest, rents, royalties, salaries, wages, annuities, licensing fees, income, and profits derived from sources within the U.S.

Anguilla is treated as having an Inter-Governmental Agreement in effect as of June 30, 2014

https://www.treasury.gov/resource-center/tax-policy/treaties/Pages/FATCA.aspx

There are no limits mandated by our Regulator at this time however at your financial institution level the existence of any limits should be discussed, as it can be an option to control the nature of the transactions that could be initiated.