Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 3/24/2014

Israel - FATCA-related guidance for banking corporations 

March 24: The Bank of Israel published draft guidance for banking corporations to prepare for the implementation of the FATCA* provisions, whether or not an intergovernmental agreement is signed with the United States before July 1, 2014.

*FATCA refers to the U.S. legislation, Foreign Account Tax Compliance Act.


To date, representatives of the governments of Israel and the United States have not entered into an intergovernmental agreement (IGA) for purposes of implementing FATCA.


According to a March 2014 press release issued by the Bank of Israel, instructions issued to banking corporations include:


  • Corporate governance processes (for example, appointing a person responsible for the issue, appointing a work team, establishing policies and procedures, reports to the management and to the board of directors)
  • Examining the need for registering and signing an agreement with U.S. authorities, in line with the timetables set in the provisions
  • The manner of conduct vis-à-vis customers, particularly the possibility of refusing to provide banking services to a customer that does not cooperate with the banking corporation in the manner required for implementation of the provisions



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