A failure to comply with the requirements set out in the SA IGA will result in a breach of South African law. As such, it is imperative that South African Financial Institutions take steps to assess their SA IGA impact. With the first effective date for the SA IGA recently having passed, it is imperative that impacted South African Financial Institutions prioritise their FATCA implementation project. To this end, we have set out a few questions in light of the SA IGA for Boards to consider. If you are unsure about the impact on the Financial Institution, or should you assess that you are impacted, we recommend taking advice on this sooner rather than later to avoid any associated risks.
- Where is FACTA in South Africa now?
The intergovernmental agreement between the governments of South Africa and the United States of America to implement FATCA (“the SA IGA”), which was signed on 9 June 2014, has now been ratified by Parliament.