FATCA and AEI

Regulations to combat cross border tax evasion.

The Foreign Account Tax Compliance Act (FATCA) and the Automatic Exchange of Information (AEI) are global regulations that support efforts to combat tax evasion. These initiatives require banks and custodians, such as UBS, to document their clients’ tax status and if required, report certain client details and related financial account information to the relevant tax authorities. Funds and collective investment schemes, together with other professionally managed investment entities, are also required to document and report details of investors to the relevant tax authorities. UBS is committed to complying with FATCA and AEI as well as implementing each in accordance with applicable local regulations and guidance.

What do we require from you, our clients?

The introduction of FATCA and AEI means that we require you to provide additional tax-relevant information to enable us to meet our obligations. How US FATCA, UK FATCA and AEI will impact your relationship with UBS will depend on the products or services you receive from UBS and which UBS entity you contract with.

In 2014 FATCA was implemented by the United States to prevent tax evasion by US taxpayers holding financial accounts outside of the US. Through Intergovernmental Agreements between the US and other countries and subsequent local legislation, Financial Institutions globally are required to comply with FATCA by performing due diligence on all their clients and reporting on US Persons to the IRS. Since the introduction of US FATCA our clients are required to provide us with additional documentation to establish their FATCA status. This documentation varies depending on the jurisdiction of the UBS contracting entity, the product and client type, but may include US tax forms, written statements or self-certification forms.

In 2014 the Organisation for Economic Co-operation and Development (OECD) published the standard for the Automatic Exchange of Information to facilitate the exchange of tax information among countries participating in the AEI. The treatment of accounts under AEI is similar to that under FATCA in terms of further documenting clients with regards to their tax relevant information.

AEI - Key Information

  • The implementation of AEI will depend on when countries enter into agreements to exchange information with each other
  • Clients who hold their accounts in the European Union (EU) must be documented for AEI purposes from 1 January 2016
  • Other major financial centers such as Switzerland, Singapore and Hong Kong will follow one year later
  • Documentation varies depending on jurisdiction and client type, but in general a self-certification will be required that must include the account holder's country of tax residence and tax identification number or TIN

FAQs

UBS will have to adjust its onboarding processes for new customers and introduce remediation procedures to assess existing account holders, who will be required to provide self-certification. Account holders who are individuals will be required to certify where they are tax residents, which will determine if their accounts are reportable. Entity account holders will be required to certify both their tax residence and their AEI classification, which will determine if the accounts are reportable. In the case of some non-operating companies and investment vehicles, it is necessary to look for individuals who are "controlling persons" in order to obtain details of their tax residency.

Custodial and depositary accounts are in scope of AEI, as are debt and equity interests in investment entities and cash value insurance contracts issued by insurance companies. Certain types of accounts such as tax-favored savings accounts are excluded, as are some categories of account holders including members of the legal profession holding client money and certain non-profit organizations.

  • All private individual account holders with a few limited exceptions are subject to due diligence procedures and their account data is shared where appropriate.
  • The same principle applies in the case of entities, but with a greater range of exceptions including publicly listed companies, governmental institutions, central banks, banks and financial institutions.
  • Controlling persons: beneficial owners of non-operating entities

As well as new account holders, existing account holders who have links to one or more reportable jurisdictions will be subject to AEI remediation. This will also apply to existing individual account holders with links to countries that enter into an exchange agreement with Switzerland under AEI after this date.

Personal data such as date of birth and address as well as account data and tax identification numbers (TIN).

AEI does not replace FATCA as the US has not adopted AEI. AEI will however replace some other bilateral tax arrangements such as those with the UK, Austria and the EU. Clients who have already been documented under FATCA may have to be processed again under AEI.

For Switzerland, the first exchange of information will take place by end of September 2018 for the tax year 2017.

 

For further information and documentation for AEI and FATCA, please click and expand the divisional links below.

Switzerland

Please refer to the Swiss AEI/FATCA site, if your UBS business relationship is in Switzerland.

All other locations

Addendum to UBS Self-certification Forms: Key definitions

Please click on "PDF" for additional explanations of AEI/FATCA terms used in the UBS Self-certification Forms.

Download PDF (PDF, 192 KB)

AEI lists of reportable and participating jurisdictions 
for completion of UBS Self-certification Forms

Please click on the country(s) in which you maintain your UBS account(s) to check if your tax residence is in a reportable and/or participating jurisdiction.

 

Provided below are a number of documents aimed at supporting you as you confirm both your FATCA and AEI status.

UBS is now remediating pre-existing account holder's tax documentation and FATCA self certifications for financial accounts opened prior to 1 January 2015.

New clients will be required to complete the self-certification form below as part of the account opening process.

For pre-existing clients UBS will be writing to affected account holders over the next few months to renew tax documentation. Any client who wishes to can complete a self-certification form (see below) and if applicable, also return an updated IRS form (with both Chapter 3 and Chapter 4 status completed). Forms can be returned via the following email address: fatca-preexisting-rem@ubs.com. Please note that this email address is for processing only. If you have any queries in relation to your accounts, please contact your UBS Relationship Manager.

AEI lists of reportable and participating jurisdictions 
for completion of UBS Self-certification Forms

Please click on the country(s) in which you maintain your UBS account(s) to check if your tax residence is in a reportable and/or participating jurisdiction.

IRS Forms 

 

Factsheets for Institutional Clients

DE    FR

AEI lists of reportable and participating jurisdictions 
for completion of UBS Self-certification Forms

Please click on the country(s) in which you maintain your UBS account(s) to check if your tax residence is in a reportable and/or participating jurisdiction.

Guidance for Clients

The details provided on this page and related fact sheets and FAQs are intended to aid you in your understanding of the FATCA and AEI requirements. Please note this information is not intended to serve as tax advice. If you are uncertain of your FATCA or AEI status or the impact of these regulations on you we suggest you consult a professional tax advisor.