On 1/21/25, the IRS issued Bulletin Issue Number: 2025-02 to remind the FATCA Responsible Officer that Certifications are due 7/1/25 for the Certification period ending December 31, 2024. The Bulletin also provided a reminder to users of the new FATCA Registration System sign-in options. Entities that are required to certify ought to keep in mind that compliance status with FATCA is critical to the entity’s ability to continue operating as an “on-going concern” in the financial industry. Entities that are non-compliant with FATCA risk having payments withheld by counterparties, banking and or correspondent relationships terminated and have the entity classified as a “Non-Compliant.” That said, entities that are required to certify and their Responsible Officers ought to consult specialized FATCA training providers that have experience with the IRS, are fully knowledgeable on the U.S. Internal Revenue Tax Code.
FATCA Responsible Officer Certifications
For the certification period concluding on December 31, 2024, certifications from the FATCA Responsible Officer (“RO”) under the FATCA must be submitted by July 1, 2025, at the latest. Entities obligated to provide these certifications that fail to do so by the specified deadline will be deemed non-compliant with FATCA requirements. The repercussions of such non-compliance may involve the loss of the entity’s FATCA status and, consequently, the removal of its Global Intermediary Identification Number (GIIN) from the Foreign Financial Institution (FFI) list.
FATCA Responsible Officer
The designation of RO, or authorizing individual, refers to a person who is permitted by local legislation to provide consent for the financial institution (FI) to share FATCA-related tax information with external parties.
A point of contact (POC) is defined as an individual who is authorized to obtain FATCA-related information from the IRS concerning the FI and to undertake other actions related to FATCA on behalf of the FI.
It is important to note that if an FI serves as a lead FI, the RO of that FI will automatically function as a POC for both the lead FI and any affiliated member FIs. Consequently, the RO of a lead FI may receive communications pertaining to the FATCA information of its member FIs, which may include requests from FIs to integrate into the lead FI’s expanded affiliated group.
FATCA Certification Process
A FATCA certification involves a series of inquiries that the Responsible Officer (RO) of specific entities is required to address and submit to the IRS, thereby affirming the entities’ adherence to FATCA regulations.
There are two categories of certifications: the Certification of Preexisting Accounts (COPA), which pertains to an entity’s accounts that existed prior to its initial registration, and the Periodic Certification, which concerns the entity’s ongoing compliance with various FATCA obligations.
FATCA Responsible Officer Information Must be Up to Date
FATCA certifications are required to be completed and submitted via the online FATCA registration system. Each relevant certification will be accessible through a link on the entity’s homepage. Provided that the contact information for the Responsible Officer in the FATCA registration system is correct, the Responsible Officer will receive an email notification whenever the entity has a new message.
The FATCA Registration System has introduced new sign-in methods
Users are now required to authenticate their access through either Login.gov or ID.me, which are credential service providers endorsed by the IRS. This enhancement not only elevates security measures but also aligns with the digital identity standards set forth by the National Institute of Standards and Technology (NIST).
Both new and returning users must establish a profile with either Login.gov or ID.me to gain entry to the FATCA Registration System. Access will be denied without a valid profile from one of these services. If an user possess an existing profile with Login.gov or ID.me, the user may utilize it to log into the FATCA Registration System, provided that the email associated with the profile corresponds to that of the Responsible Officer or Point of Contact listed in the FATCA registration.
Know this
The FATCA Responsible Officer has many responsibilities and obligations and is the only person authorized to act on behalf of an entity that is required to certify. Certifying FATCA compliance of an entity to the IRS and notifying the IRS of material failures or non-compliance with FATCA requirements may present a significant challenge. The FATCA Responsible Officer has the responsibility of ensuring and collecting supporting evidence to back up the certification to the IRS.
Who is your FATCA Responsible Officer?
Are you an Entity that has to certify by 7/1/25?
Does your FATCA training provider have experience with the IRS?
Is your FATCA training provider fully knowledgeable on the U.S. Internal Revenue Tax Code? ©
