FATCA (Foreign Account Tax Compliance Act) Notice
For U.S. Persons and U.K. Residents
Any customers, account signatories or beneficial owners that are U.S. citizens, U.S. residents or green card holders, or that were born in the United States should read the following notice:
LOM is registered as a participating foreign financial institution under FATCA regulations. Customer accounts determined to be “U.S. Accounts” under the regulations will be reported annually to the U.S. Internal Revenue Service beginning in 2015. Bermuda signed a “Model 2″ Intergovernmental FATCA agreement (“IGA”) with the U.S. on December 19, 2013. Bahamas signed a “Model 1” IGA with the U.S. on November 3, 2014.
“U.S. Accounts” may include, but are not limited to:
- Individual or joint accounts with a U.S. citizen or U.S. resident as an owner or accountholder
- Where the accountholder is a U.S. corporation, partnership or trust
- Foreign corporations with one or more U.S. persons owning more than 10% of the entity (with some exceptions depending on the type of corporation)
- Foreign trusts where the grantor is a U.S. person, or more than 10% of the beneficial interest is held by one or more U.S. persons
- An account with a U.S. citizen or U.S. resident as an account signatory or POA
Note individuals born in the United States are considered U.S. citizens unless they can provide documentation evidencing renunciation of citizenship.
Beginning as of January 1, 2014, accounts deemed to be U.S. accounts under FATCA will be reported to the IRS at various subsequent reporting deadlines. For more information, contact your account advisor. Also see the IRS Website.
U.K. FATCA Agreement for U.K. Residents (applicable only to Bermuda customers)
Bermuda and the United Kingdom signed a “U.K. FATCA Intergovernmental Model 2 Agreement” on November 25, 2013. This agreement is modeled on the U.S. FATCA program, and will require reporting of financial accounts held or controlled by individuals or entities that are resident in the UK for tax purposes. The agreement is effective as of June 30, 2014. The other U.K. Crown Dependencies and British Overseas Territories have already signed or are expected to sign similar agreements. Initial reporting for UK reportable accounts will begin in 2016 for the 2015 calendar year.