FATCA

Dear customers of CB “Euro-Asian Investment Bank” LLC!

In connection with the entry into force on 01.07.2014 of the US Foreign Account Tax Compliance Act, hereinafter referred to as FATCA, aimed at preventing tax evasion by American tax residents, financial institutions (including Russian credit organizations) are obliged to monitor the presence of accounts opened by American taxpayers (individuals and legal entities, as well as persons affiliated with them) in these financial organizations, and also to disclose the American tax authorities (hereinafter – IRS) information on these accounts.

In the legislation of the Russian Federation, the specifics of credit organizations conducting financial operations in the Russian Federation with persons subject to foreign law on taxation of foreign accounts are established by Federal Law No. 173-FL of 28.07.2014 “On the specifics of financial transactions with foreign citizens and legal entities individuals, on introducing amendments to the Code of the Russian Federation on administrative offenses and declaring invalid individual provisions of legislative acts of the Russian Federation ”(hereinafter referred to as Federal Law No. 173-FL).

In order to avoid legal and reputational risks associated with possible sanctions against CB “Euro-Asian Investment Bank” LLC (hereinafter referred to as the Bank) by the IRS and credit institutions (Russian and foreign) in the form of forced retention of 30% of incoming payments, as well as the possible closure of correspondent accounts in foreign currency, it was decided to merge the Bank to FATCA.

CB “Euro-Asian Investment Bank” LLC registered on 30.06.2014 with the US Tax Administration (registration number – VHX2GP.99999.SL.643) and is a full member of FATCA.

CB “Eurasian Investment Bank” LLC takes measures to identify among those who have entered into (concluded) agreements with the Bank providing for the provision of financial services to persons subject to foreign law on taxation of foreign accounts (hereinafter referred to as the client – foreign taxpayer). When a client is identified – a foreign taxpayer, the Bank sends information to the US tax department and to the authorized bodies of the Russian Federation in the manner, time and volume established by the Government of the Russian Federation in coordination with the Central Bank of the Russian Federation.

At the same time, the Bank is entitled to transfer information to a foreign tax authority and (or) foreign tax agents authorized by a foreign tax authority to withhold foreign taxes and fees only upon receipt from the client – foreign taxpayer of consent to transfer information to a foreign tax authority and subject to the requirements Part 4 of Article 3 of Federal Law No. 173-FL.

We draw your attention to the following facts:

  1. In case of failure of the contracting client, in respect of which the Bank has a reasonable, documented assumption that the client belongs to the category of clients – foreign taxpayers, to provide necessary information to identify him/her as a client – foreign taxpayer, and (or) non-submission by the client – a foreign taxpayer within fifteen working days from the date of the Bank request for consent (refusal to provide consent) for the transfer of information to a foreign tax authority, the Bank has the right to refuse a client to enter into a bank account agreement (deposit) or other agreements of financial services.
  2. If the Bank has a reasonable, documented assumption that a client belongs to the category of clients – foreign taxpayers, but the client has not submitted the information requested in accordance with the internal documents of the Bank, allowing to confirm the specified assumption or to refute it, as well as in case of non-presentation by the client – a foreign taxpayer within fifteen working days from the date of the request of the financial organization, consent (refusal to provide consent) to transfer information to the foreign tax authority, the bank has the right to refuse to process operations performed in favor of or on behalf of the specified client under an agreement providing for the provision of financial services, and (or) in cases provided for by Federal Law No. 173-FL, unilaterally terminate the agreement providing for the provision of financial services, notifying the client of the decision no later than the next day from the day of the decision.
  3. In case of receipt of funds in a bank account (deposit) opened for a client – a foreign taxpayer, in case of the Bank made decision to refuse to process operations, the Bank refunds payments received in favor of the client – a foreign taxpayer to accounts of payers in the sending banks.
  4. If the Bank has a reasonable, documented assumption that a client belongs to the category of clients – foreign taxpayers, but theclient has not provided the information requested in accordance with the internal documents of the Bank, allowing to confirm the specified assumption or to refute it, as well as in case of non-presentation by the client – a foreign taxpayer within fifteen working days from the date of the request of the financial organization, consent (refusal to provide consent) to the transfer of information to the foreign tax authority the status of the American taxpayer, in accordance with the rules of FATCA will automatically be considered as “unscrupulous account holders” (Recalcitrant account holders) . Such persons will be subject to sanctions in the form of a forced retention of 30% of incoming payments sent to Russia directly through a US bank or in transit through a US bank and related to investment income from sources (assets) in the US (interest and dividends paid by the US). company; income from the use of real estate in the United States (rents) and US intangible assets (royalties, transfers for the use of intellectual property income), as well as income from the sale of shares, shares and other financial instruments (if the seller is a US resident).

If a client complies with the status of a US tax resident, CB “Euro-Asian Investment Bank” LLC asks to inform about it in one of the following ways:

  • by e-mail to: AML@eab.ru;
  • by phone: 8 800 555 56 03, ext. 120.

 Regulations on financial transactions with foreign citizens and legal entities