The Foreign Account Tax Compliance Act (FATCA)
What is FATCA?
FATCA stands for the Foreign Account Tax Compliance Act, which took effect from June 2014.
It is a piece of legislation introduced by the United States Department of Treasury (Treasury) and the US Internal Revenue Service (IRS). The purpose of FATCA is to encourage better tax compliance by preventing US persons (see glossary) from using banks and other financial organisations to evade US taxation on their income and assets.
How does the legislation affect me?
We're committed to becoming fully FATCA compliant. But not just because we want to, we have to. It's the law. The UK has signed an inter-governmental agreement (IGA) to help the US implement FATCA.
So, all UK banks are legally obliged to get certain information about customers who may be considered as US persons (see glossary) in order to determine if we need to report them to HM Revenue & Customs (HMRC) and the IRS.
Because of this, we might contact you to ask for further information or documents so we can verify your tax status.
Please note that you might receive more than one request for information if you have multiple relationships with different members of the HSBC Group. It's important to respond to all requests, even if you think you've already supplied the information.