FATCA
Foreign Account Tax Compliance Act

Why FATCA?

Following a report by the United States Congress, it was found that several banks outside US borders "helped" entities that would normally have to comply with US tax law to evade taxes to the state, tax evasion exceeding the billions of dollars (estimated at about 100 billion dollars annually). Thus, in October 2009, a new bill was introduced into the US Senate to reduce tax evasion. Therefore, on 18 March 2010, the Foreign Account Tax Compliance Act (FATCA) was promulgated as a law by the President of America.

What is FATCA?

FATCA is an acronym for the "Tax Compliance Law of Foreign Accounts" issued by US authorities. This regulatory act requires financial institutions registered outside the US to identify information about their customers and business partners to determine whether they meet the criteria for reporting to the US Internal Revenue Service (IRS).


If these criteria are met, it is necessary, in order to comply with the FATCA, that certain information should be provided to the IRS in order to prevent tax evasion caused by US taxpayers by using open accounts with financial institutions outside the US or offshore investment instruments.

FATCA Applicability

FATCA applies as of July 1, 2014 to individuals and businesses (US citizenship / resident or US-controlled) who have fiscal obligations towards the US, whether they are inside or outside the borders US.


In order to reduce the risk of non-compliance, the FATCA also provides for possible sanctions against non-participating financial institutions. These penalties may materialize in the form of 30% deductions at the source (affecting all bank and customer receipts as US Treasury orders – e.g.: dividends and interest paid by US corporations).


An important aspect to be taken into consideration is that Romania signed the intergovernmental agreement (IGA1) with reciprocity, which will automatically trigger FATCA compliance with the credit institutions registered in Romania. Therefore, BCR complies with the FATCA requirements, the approach being not stricter than that of the other banks in Romania that chose to comply.

Specific terms

US person - is that person (natural or legal entity) who meets one of the following conditions:

  • a US citizen, even if they reside outside United States or holds an additional citizenship;
  • a US passport holder;
  • a person born in the USA, unless they relinquished their citizenship;
  • a US permanent resident (green card holder).
  • a USA entity (created / registered / resident in the US);
  • a non-US entity "passive" with real beneficiary relevant FATCA.

The criteria listed above are not complete, therefore, for more details, we recommend consulting the web site www.irs.gov.


US indices (US Indicia) - US indices are indicators that indicate that a natural person or legal entity can be considered relevant FATCA:

  • US Citizenship, or US permanent Residence (e.g. Green Card holder);
  • Birthplace is USA;
  • USA address (home address, residency, mailing) ;
  • A US phone number;
  • A power of attorney or a signature authorization granted to a person with a US address.

The TIN / SSN
TIN (Tax Identification Number)
is the fiscal identification number assigned to a person being used by the IRS in the tax law administration process. When this number is issued by the Social Security Administration (SSA), it is called the Social Security Number (SSN).


NFFE - "Non-Financial Foreign Entity" - legal entity outside the US that is not a financial institution. There are two categories of NFFE:

  • Active NFFEs: are entities involved in active or business transactions (production, industry, non-financial services, etc.) where less than 50% of gross income in the previous calendar year is passive.

Ex: An IT service provider who has no income other than the one in this activity.

  • Passive NFFEs have a passive income higher than 50% of gross income (such as dividends, interest, rents, royalties, annuities).

Ex: An IT service provider that generates higher revenue from financial investment than the declared business activity (software creation and delivery, network administration, etc.).


Passive NFFE US-owned
Non- financial Entity with a passive income over 50% controlled / owned by one or more US Persons.

Exempt Beneficial Owner - refers to non-FATCA entities:

  • Any foreign government, any political subdivision of a Foreign Government or any wholly owned or government agency of one or more of the above;
  • Any International Organization or any fully owned agency or governmental agency thereof;
  • Any Foreign Central Bank in question;
  • Any Government of a US Territory;
  • Certain Pension Funds;
  • Entities wholly owned by one or more Owners Exempt Beneficiaries (includes any person deemed to be a Relief Beneficiary Owner in accordance with Model 1 IGA or Model 2 IGA);

Forms used

  • Form W-9: represents the Tax Identification Number Application. Its purpose is to request the Tax Identification Number (TIN) of the taxpayer. It is used exclusively by US persons (natural or legal persons).

Instructions for completing the W-9 form can be found on the IRS website: www.irs.gov/pub/irs-pdf/iw9.pdf .

  • W-8BEN Form: aims to identify real non-US beneficiaries of accounts and transactions. It is used exclusively by individuals.

Instructions for completing the W-8BEN form can be found on the IRS website: www.irs.gov/pub/irs-pdf/iw8ben.pdf .

  • The W-BEN E Form: aims to identify non-US Legal Entities or Foreign Financial Institutions (FFIs) who are real beneficiaries, accounts or transactions. It is used exclusively by legal entities or Foreign Financial Institutions.

Instructions for completing the W-8BEN E form can be found on the IRS website: www.irs.gov/pub/irs-pdf/iw8bene.pdf .

PF Customer Information

Dear customers,

As a result of the entry into force on 1 January 2016 of Law no. 207/2015 regarding the Fiscal Procedure Code ("CPF"), we communicate that BCR, like other banks in Romania, has the obligation [1] to send to the National Agency for Fiscal Administration ("ANAF") information regarding the accounts held at BCR by Clients fulfilling the transmission criteria detailed in Annex no. 1. The information reported by BCR to ANAF will be the subject of a data transfer outside the territory of Romania to be carried out by ANAF to the US Treasury.

Therefore, please note that, starting August 31st, 2016, the Bank send ANAF information on accounts held by BCR Customers meeting the criteria for transmission.

The relevant information under this reporting, in accordance with the legal provisions, is:

  • the name, address, tax identification number (s) (TIN), date and place of birth of the Account Holder;
  • account number or its functional equivalent in the absence of an account number;
  •  balance or account value. 

[1] according to Law no. 233 / 08.10.2015 on the ratification of the Agreement between Romania and the United States of America for the Improvement of International Tax Compliance and the Implementation of the FATCA, signed in Bucharest on 28 May 2015 ("Law No. 233/2015") by which both Romania and the States United States of America ("USA") have undertaken to automatically exchange information on - for general purposes - certain accounts held by residents of Romania / US residents administered by financial institutions in Romania / USA

PJ Customer Information

Dear customers,

We inform you that on November 3, 2015, Law no. 233 / 08.10.2015 on the ratification of the Agreement between Romania and the United States of America for the Improvement of the International Tax Compliance and the FATCA Implementation, signed in Bucharest on May 28, 2015 ("Law No. 233/2015"), by which both Romania and the States United States of America ("USA") have undertaken to automatically exchange information about certain accounts held by residents of Romania / US residents administered by financial institutions in Romania / USA

At the same time, on January 1, 2016, Law no. 207/2015 regarding the Fiscal Procedure Code ("CPF"), which requires BCR, as a credit institution, to submit annually to the National Agency for Fiscal Administration ("ANAF") financial information regarding the accounts held at BCR by the resident taxpayers of the countries with which Romania has international legal agreements (in this case, the USA). According to the "CPF", the submission of ANAF data to ANAF should be made by 31 August 2016.

We hereby wish to inform you that following the implementation by BCR of the internal processes established in order to align with the legal provisions indicated above, several elements were identified among the data provided by our clients in the client knowledge procedure (one or more of the indices listed in the document attached to this address) that encloses the Companies or persons controlling them in the list of reporting entities / persons. BCR will carry out the statutory reporting by August 31, 2016. BCR's failure to comply with the reporting obligation has as a consequence the sanctioning of BCR in accordance with the provisions of the CPF.

We indicate the information subject to reporting in accordance with the legal provisions:

  • the name, address of the registered office, the participating jurisdiction of residence (ie USA) and the Company's tax identification number (s) / No (s), and 
  • name / home address / address of correspondence / current residence, participating / participating jurisdiction (s) of residence / US and / , which exercises control within the Company if the indices that are the subject of reporting are identified with respect to them;
  •  account number
  •  balance or amount of the account, including, in the case of a Redemption or Redemption Insurance Contract, the Redemption amount valid at the end of the reported / reported calendar year or at the end of another reporting period if the account was closed during the year.

In addition to this information, depending on the type of Account to be reported, BCR will also report to ANAF as follows:

i. For the Custody Account:

i.1 the total gross amount of interest paid or credited to the account (or related to that account) during the reporting period;

i.2 the total gross amount of the dividends paid or credited to that account (or related to that account) during the reporting period;

I.3. the total gross amount of other revenue generated in connection with the assets held in the account, paid or credited to that account (or related to that account) during the reporting period;

I.4. total gross receipts from the sale or redemption of Financial Assets paid or credited to the account during the reporting period in respect of which the Financial Reporting Institution acted as custodian, broker, agent or any other agent of the Account Holder

II. For Deposit Account:

II.1. the total gross amount of interest paid or credited to the account during the reporting period;

iii. For the Account other than the Custody Account or the Deposit Account:

iii.1. the total gross amount paid or credited to the Account Holder in respect of that account during the reporting period in respect of which the Recipient Financial Institution is debtor. The aggregate amount of any reimbursements paid to the Account Holder during the reporting period will also be reported.

At the same time, we will inform you that the above mentioned information will be reported in the currency in which the account is expressed; the balance / amount of a custodian account is the cash account balance at the end of the appropriate reporting period, cumulated with the aggregate market value of the financial instruments in the account at the end of the appropriate reporting period.

Please note that the information reported by BCR to ANAF are subject to a data transfer performed by ANAF outside the territory of Romania to the US Treasury under the Agreement between Romania and the United States of America for the Improvement of International Tax Compliance and FATCA Implementation, signed in Bucharest on May 28, 2015.

PROTECTION OF PERSONAL DATA

BCR, as data controller, processes personal data in compliance with Regulation (EU) no. 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of individuals with regard to the processing of personal data and on the free movement of such data and repealing Directive 95/46 / EC (the Regulation) and with due regard for any other local or European legislation.

For more details on how BCR processes your personal data, please see the Privacy Policy by visiting the following link: https://www.bcr.ro/ro/persoane-fizice/informatii-utile/politica-privind-confidentialitatea

At the same time, we inform you that in accordance with the provisions of the Regulation, you have the following rights:

- the right to information, ie the right to receive details regarding the processing activities carried out by BCR;

- the right of access to data, ie the right to obtain confirmation from BCR regarding the processing of personal data, as well as details regarding the processing activities;

- the right to rectification, ie the right to obtain inaccurate data rectification by BCR, as well as the completion of incomplete data;

- the right to delete the data (the "right to be forgotten"), provided that the conditions laid down by law are met;

- the right to restrict processing to the extent that the conditions laid down by law are met;

- the right to portability of data, namely: (i) the right to receive personal data in a structured way, commonly used in an easy-to-read format, and (ii) the right to receive such data by BCR to another data controller, provided the conditions laid down by law are met;

- the right to object - in respect of processing activities carried out for direct marketing purposes, including profiling;

- the right not to be subject to an automatic individual decision, ie the right not to be the subject of a decision taken solely on the basis of automatic processing activities;

- the right to address to the National Supervisory Authority for Personal Data Processing or to the competent courts, to the extent that you consider it necessary.

If the Company and / or the Person / Entity exercising control over it will be retained in the list of persons subject to reporting », BCR will, as far as it is concerned, carry out the reporting provided by law, according to described in the presence letter.

For further information, you can contact BCR representatives from any BCR unit or your business manager. Definitions for capitalized terms are found in the Appendix .

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George
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