On 7/31/18, IRS released notification (2018-9) to inform that the Certification of Pre-Existing Accounts (COPA) and Periodic Certification Process (relates to an Entity’s compliance with various FATCA requirements) are now available in the FATCA Registration System.
The Updates to the FATCA Registration System include:
1. New option to submit a certification:
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Complete and submit COPA and Periodic Certifications
2. Updates to account home page:
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View COPA and Periodic Certification summary information
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View and print submitted Certifications
3. Updates to Registration Form:
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Updated list of FATCA classifications
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Review Certification information in lead Financial Institution (FI’s) member table
Due Dates
On March 19, 2018, IRS released “Draft FATCA Certification Questions” (Notification 2018-1) and stated that the update to the FATCA Registration Portal containing FATCA certifications would not be available prior to July 2018. The due date for submitting both the COPA and the periodic certification was July 1, following the third full calendar year after the date the entity registered and received a GIIN (Global Intermediary Identification Number). IRS Notification 2018-1 also stated that for entities that had certifications due by July 1, 2018: “any Responsible Officer (RO) that is required to certify, will have no less than 3 months from deployment of the certifications on the FATCA Registration Portal to submit them”.
IRS Notification 2018-9 states that:
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All FATCA registered entities are advised to login to update their FATCA classification.
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Entities that have a certification requirement are required to update their FATCA classification.
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Entities that do not have a certification requirement should update their FATCA classification in order to avoid inapplicable certification related notices in the future.
Will you be Ready to meet your COPA and Periodic Certifications Deadlines? First Deadlines are due in December 2018. FFI’s should be Ready by November 2018.
The RO has many responsibilities and obligations and is the only person authorized to act on behalf of a Foreign Financial Institution (FFI) to report the FATCA status of the FFI. The individual that is identified as the RO and/or the delegated Points of Contact (POC) are the only individuals authorized to receive emails from the IRS related to an FFI's FATCA account. The RO is the person at an FFI that has to establish and maintain a FATCA compliance program, as well as certifying compliance with FATCA to the IRS, or notifying the IRS if the FFI has any reportable material failures or reportable non-compliance with FATCA requirements.
The FATCA Online Registration User Guide for detailed certification instructions and information has been updated and reflects:
COPA Due DATES are as follows:
Periodic Certifications DUE DATES are as follows:
Don’t be a Victim of your own Making
The RO has the responsibility of ensuring and collecting supporting evidence to back up the certification to the IRS. Certifying FATCA compliance of the FFI to the IRS and notifying the IRS of material failures or non-compliance with FATCA requirements can be daunting task. There is also a sense of urgency as the first due date for COPA and Periodic Certification is in December 2018. FFIs need to be ready before then.
An FFI’s compliance status with FATCA is critical to its ability to continue operating as an “on-going concern” in the financial industry. FATCA non-compliant FFIs risk having payments withheld by counterparties, banking and or correspondent relationships terminated and being classified as a “Non-Compliant” entity.
FFIs and ROs ought to consult specialized FATCA training providers that have experience with the IRS and are fully knowledgeable on the U.S. Internal Revenue Tax Code.
