FATCA and AEI

The Foreign Account Tax Compliance Act (FATCA) and the Automatic Exchange of Information (AEI) are global regulatory frameworks that provide a legal basis for the automatic exchange of information in tax matters, supporting efforts to combat tax evasion.

These regulations require Reporting Financial Institutions (RFIs) to provide information on financial accounts (e.g., deposit and custody accounts) to the local tax authorities.

This information relates to cross-border account holders who are tax resident outside the reporting FI’s jurisdiction. It is than exchange by the local tax authority with the tax authorities of the country where a reportable Account Holder and/or Controlling Person is tax resident.

FATCA

The Foreign Account Tax Compliance Act (FATCA) is a U.S. federal law designed to prevent offshore tax evasion by U.S. Persons (US tax residents, US citizens, certain US legal entities etc.) FATCA requires non-US banks and other financial institutions to report information about U.S. Account Holders either to the U.S. Internal Revenue Service (IRS) or the relevant local tax authority under an Intergovernmental Agreements (IGA).

Following the introduction of FATCA our clients are required to provide us with additional documentation to establish their FATCA status.

AEI

The Common Reporting Standard (CRS), developed by the OECD, and the EU Directive on Administrative Cooperation (EU DAC 2) are key frameworks designed to enhance tax transparency through the Automatic Exchange of Information (AEI).

Local regulations implementing CRS require financial institutions – including banks, to collect and report (if applicable) financial account data to their local tax authorities. These authorities then automatically exchange the information with other participating jurisdictions.

Under these regulations, our clients are required to provide us with documentation confirming their tax residency and AEI classification.

What do we require from you, our clients?

How FATCA and AEI impact your relationship with UBS depends on the products or services you receive from UBS and which UBS entity you contract with. Generally, we request clients to provide self-certification or equivalent confirming their tax residency and status under FATCA and AEI.

This documentation varies depending on the jurisdiction of the UBS contracting entity, the product and client type, but may include self-certification forms, US tax forms or written statements.

Clients should be aware that UBS is legally obliged to report certain account holders details and related financial account information to the relevant tax authorities.

List of CBI / RBI schemes

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.