Implications for Isle of Man businesses
It is for the affected firms to ensure that they can comply with FATCA, and to cover the costs of compliance, not the Isle of Man government. However, the Isle of Man government will liaise with the USA on a government to government basis to assist the industry.
All forms of business engaged in activities covered by FATCA and the draft regulations should make themselves aware of the proposals and should assess how they apply to them and their clients:
- They should consider whether they need to register with the IRS, and consider the impact of not registering when dealing with FFIs both in the Isle of Man and elsewhere.
- They should consider the impact of FATCA provisions on their existing clients/customers or related parties relationships and whether further customer due diligence work will need to be undertaken.
- They should consider the impact of FATCA provisions on their new client acceptance processes.
- They should also consider whether letters of engagement, terms and conditions, account rules or other contractual arrangements are need to be amended in light of FATCA requirements.