Shinhan Bank

FATCA stands for the Foreign Account Tax Compliance Act (FATCA), a U.S. law enacted in 2010 requiring foreign financial institution to report to the Internal Revenue Service (IRS) information about financial accounts held by:

• S. taxpayers or by
• Foreign entities in which U.S. taxpayers hold a substantial ownership interest.

The Government of Vietnam has signed the Inter-governmental Agreement (IGA) Model 1B with the Government of the United States on compliance with FATCA on 01 April 2016, which was enforced on 07 July 2016.

SHBVN is committed to being fully compliant with FATCA. Therefore, our valued customer is requested to provide information and relevant documentation in accordance with FATCA regulation. The information and documentation are used for fulfillment of FATCA compliance requirements only.

For comprehensive and updated information on FATCA, please visit www.irs.gov

Note:

• As SHBVN does not to provide tax advice, please consult your tax/legal advisers if you have any questions regarding FATCA or U.S. IRS forms.
• SHBVN shall not be liable for breach of tax obligation committed by customer.

1. What is FATCA?

FATCA stands for the Foreign Account Tax Compliance Act (FATCA), a U.S. law enacted in 2010 requiring foreign financial institution to report to the Internal Revenue Service information about financial accounts held by:

• S. taxpayers or by
• Foreign entities in which U.S. taxpayers hold a substantial ownership interest.

The Government of Vietnam has signed the Inter-governmental Agreement (IGA) Model 1B with the Government of the U.S. on compliance with FATCA on 01 April 2016, which is enforced on 07 July 2016.


2. Is FATCA applicable to individual or entity customers?

FATCA impacts both individual and entity customer who establish banking relationship with SHBVN.


3. Does FATCA replace existing U.S. tax rules that I have already followed?

FATCA does not replace the existing US tax regulations. It may however add additional requirement to the existing US tax regulations that you are compliant with. Should you need further tax advice, please consult a professional tax advisor.


4. What do I need to do?

When you establish new banking relationship with SHBVN and/or when you update certain information, you will be requested to complete FATCA Self-certification together with banking products/ services application forms. SHBVN business contact will provide you with relevant FATCA Self-certification form for your fulfillment.


5. How frequently will I have to provide information for FATCA purposes?

FATCA is an on-going process. If your account information changes, which leads to the change of your FATCA status, SHBVN may be required to contact you to obtain additional information/ documentation for FATCA monitoring.


6. Is SHBVN the only bank to be affected by FATCA?

No. Under IGA, all the relevant financial institutions and banks including SHBVN are required to be compliant with FATCA. Each bank may apply different implementation approach or FATCA self-certification templates. However, information obtained from customer for FATCA reporting in principle shall be similar following FATCA regulation and State Bank of Vietnam (SBV) guidance. 


7. What does SHBVN have to do to comply with FATCA?

SHBVN is required to fulfill FATCA compliance obligations, including but not limited to: 

• Obtain individual/ entity customers’ information/relevant documentations to determine customers’ FATCA status when customer establish banking relationship with SHBVN as well as during customer’s business relationship with SHBVN.
• Fulfill FATCA reporting to SBV and IRS in accordance with FATCA regulation and SBV guidance.

Complete other FATCA compliance requirements in accordance with FATCA regulation and SBV guidance.


8. Which information will be reported?

Reported information depends on FATCA classification of the customer. This information typically is the information customer provides in FATCA Self-certification together with customer financial account maintained at SHBVN.


9. What will SHBVN do if I do not provide the information required under FATCA?

SHBVN is committed to being fully compliant with FATCA. In case customer does not provide information as required under FATCA regulation, SHBVN:

• May not be able to provide banking products/ services to new customer.
• May be required to report information of customer who does not provide information under FATCA regulation.
• May consider continuing of providing banking products/ services to the existing customer.
• May be required to perform tax withholding on certain US source payment coming to customer’s account following US IRS and SBV request and guidance.