Foreign Account Tax Compliance Act in the US

Our Ref.: B10/20C
B1/15C
13 November 2014
The Chief Executive
All Authorized Institutions
Dear Sir/Madam,
Foreign Account Tax Compliance Act in the US
Further to the announcement made by the Financial Services and Treasury Bureau (“FSTB”) on 9 May 2014 regarding the discussions on the inter-governmental agreement (“IGA”) between Hong Kong and the US to facilitate the compliance of the US Foreign Account Tax Compliance Act (“FATCA”) by financial institutions in Hong Kong, I am writing to inform you that a Model 2 IGA was signed between Hong Kong and the US today1 and the agreement is available at the website of the FSTB. We would like to draw AIs’ attention to the content of the IGA and its annexes which set out, among others, the due diligence procedures which financial institutions in Hong Kong2 should follow to identify the US accounts and accounts held by nonparticipating financial institutions. If you have any questions relating to this letter, please feel free to contact Ms. Maggie Wong on 2878-1601 or Mr. Jason Chan on 2878-1315. Yours faithfully, Henry Cheng Executive Director (Banking Supervision) 1 www.info.gov.hk/gia/general/201411/13/P201411130432.htm 2 except for the financial institutions which are described in Annex II to the IGA as Non-Reporting HKSAR Financial Institutions or otherwise qualify as deemed-compliant foreign financial institutions or exempt beneficial owners under relevant US Treasury Regulations