Regulatory Alerts2014-01-01
Circular No. 1 of 2014 Regulating Procedures for Implementing the US Tax Compliance Law (FATCA) Regarding Accounts of Americans Dealing with Non-Banking Financial Market Entities
The Egyptian Financial Supervisory Authority (EFSA) issued Circular No. 1 of 2014 to mandate non-banking financial institutions under its supervision to implement US Tax Compliance Law (FATCA) procedures for accounts held by US persons. The directive requires these institutions to update customer identification records to flag US persons by January 1, 2014 for new clients and June 15, 2014 for existing ones, and to report account balances exceeding $50,000 to the IRS by June 30, 2014. Institutions must also obtain explicit consent from US clients for information disclosure and notify the EFSA immediately if they cannot properly comply with these regulatory measures.
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