You should know how FATCAs effects on Hong Kong Banks

The Foreign Account Tax Compliance Acts(FATCAs) was enacted in 2010 to target non-compliance by U.S. taxpayers using foreign bank accounts. It requires all foreign financial institutions (FFIs) to search their records for indicia indicating U.S. person-status and to report the assets and identities of such persons to the U.S. Department of the Treasury. That means any acts of tax evasion will be eliminated by FATCAs.

U.S. individuals are requested to report their oversea bank account and all foreign financial institutions (FFIs) are obliged to report to Uncle Sam. There is no doubt that FATCAs will significantly increase the transparency for U.S. Government.

According to U.S. Department of The Treasury, more than 100 countries signed Intergovernmental Agreements(IGAs) with the U.S. Government. China and Hong Kong are amongst the nations signed the IGAs.

Some of you probably confused how does FATCAs effects global bank institutions and their clients. For example, if you want to open a hong kong company and open a corporate bank account in Hong Kong, you will be asked to sign Form-W9, banks will also request you to provide your related business proof and they will report FATCAs related informations to U.S. Government authorities. That means these banks needs to revise the existing procedures in order to compliance with FATCAs.

This changes has been already implemented by banking industry, and Ace accounting believes the banking industry in the future will be more transparent.