Patriot Act, Wolfsberg Questionnaire, FATCA

FATCA, Foreign Account Tax Compliance Act, which was put into practice by United States of America (USA) as of 01.07.2014.

FATCA agreement, known as “Agreement Between the Government of the Republic of Turkey and the Government of the United States of America to Improve International Tax Compliance Through Enhanced Exchange of Information”, assigned between the Government of Republic of Turkey and the Government of the United States of America on July the 29th, 2015 and approved by The Grand National Assembly of Turkey (TBMM) on March 16th, 2016.

CRS (Common Reporting Standard), is approved by Organization for Economic Co-operation and Development (OECD) in July 2014. CRS is a global standard for the exchange of financial account information to combat tax evasion and improve tax compliance around the globe.

The guidance document for CRS was published in the data transmission system of Revenue Administration, BTRANS, and the financial institutions in Turkey were informed via an official letter about that the requirements explained in the document are into force as of 1 July 2017.

Besides the local and international regulations, Odea Bank A.S. acts in accordance with the Bank Audi group policies and principles. It has adopted the principle of implementing the necessary policies, procedures and controls with the purpose of complying with the regulations on tax transparency and of operating as prudent merchant for the authority of the national and international financial order.

Based on FATCA, which entered into force as of 01.07.2014 and CRS effective as of 01.07.2017, it is required to determine U.S. taxpayers, foreign resident persons for tax purposes and their financial accounts held at financial institutions and to report such information to the relevant local authorities in a timely manner. Accordingly, we, just like all other banks, are requesting certain information and documentation from our customers to verify their status within the scope of FATCA and CRS regulations.

Our customers are required to declare whether they are a tax resident in a country out of Turkey and are required to provide declaration of their tax residency and additional information and documentation to support their declaration. The pre-existing customers of Odea Bank from whom the self-certification and additional information are requested within the scope of FATCA and CRS regulations, however who have not been provided the self-certification and additional information are reported to the Turkish Ministry of Finance – Revenue Administration annually.

1-Real persons

FATCA

• US citizens (including those who were born in the US and greencard holders) or those who have tax obligation in the US,

CRS

• Individuals who have a tax residency in any CRS countries

2-Legal Entities

FATCA

• Legal entities that are associated in the USA,
• Passive non-financial entities those for which at least one of the controlling real persons who have tax residency in USA

CRS

• Legal entities that are associated in CRS countries,
• Passive non-financial entities those for which at least one of the controlling real persons who have a tax residency in any CRS countries

According to FATCA and CRS regulations, information of reportable customers listed below will be shared with the Turkish Ministry of Finance-Revenue Administration:

• Name-Surname/Title
• Address
• Country of tax residency
• Tax identification number (TIN)
• Place and date of birth (for real persons)
• Account number
• Title and identification number of reporting financial institution
• The balance or value of the account for the calendar year
• The total gross amount of interest that is paid or credited to the account during the relevant reporting period
• The total gross amount of dividends that is paid or credited to the account during the relevant reporting period (for custodial accounts)
• The total gross amount of other income generated with respect to the assets held in the account, that is paid or credited to the account during the relevant reporting period (for custodial accounts)
• The total gross proceeds from the sale or redemption of financial assets that is paid or credited to the account during the relevant reporting period (for custodial)

According to FATCA and CRS regulations, information of reportable customers listed below will be shared with the Turkish Ministry of Finance-Revenue Administration:

• In accordance with FATCA Agreement signed between the US and Turkey, for the non-participating financial institutions who do not fulfil FATCA requirements, a 30% withholding over their US source income may be imposed by the US or the authorized bodies entitled to withhold tax on behalf of the US.
• Customers who choose not to comply with FATCA, declare the necessary information or do not submit proof documents under FATCA and CRS and will be reported to Revenue Administration.
• Financial institutions that do not comply with FATCA, will not be able to open new accounts with FATCA compliant foreign financial institutions. In case of non-compliance with CRS legislation; sanctions shall be imposed for each notification under the scope of Law on Tax Procedure, No:213.