U.S. Persons and FATCA
A ‘U.S. Person‘ is defined as one who is permanently resident inside the USA.
The SEC’s interpretation of U.S. federal securities laws limits Non U.S. Broker-Dealers to working with those permanently resident outside the USA. Non U.S. broker-dealers cannot approach and/ or solicit U.S. resident persons because an Internet Web site is interpreted by the SEC as being the same as a telephone call to a client.
Non U.S. broker-dealers maintaining an Internet Web site can thus only accept a U.S. person if he or she has not been solicited either directly or indirectly through accessing their web sites under the ‘unsolicited’ exemption Rule 15a-6.
U.S. customers wanting to work with Non U.S. broker-dealers can thus only approach Non U.S. broker-dealers under Rule 15a-6 if they have not been to their web sites and should be prepared to certify this fact in writing to ensure compliance with applicable law. They should also be prepared to certify in writing that they have not been solicited by the company in any manner either directly or indirectly.
For Spot Forex: InvestorsEurope (Mauritius) Ltd., does not work with U.S. citizens.
FATCA – Important Notice for all Clients including U.S. Persons.
The Provisions commonly known as the Foreign Account Tax Compliance Act (“FATCA”) became law in March 2010 and globally apply to all Foreign Financial Institutions (“FFI”) in virtually all the jurisdictions in the world, including the Vatican. FFIs include, but are not limited, to (i) Depository institutions (for example, banks) (ii) Custodial institutions (for example, mutual funds) (iii) Investment entities (for example, stock brokers, hedge funds or private equity funds) (iv) Certain types of insurance companies that have cash value products or annuities.
FFIs that do not both register and agree to report in line with the provisions of FATCA face a 30% withholding tax. Using FATCA mandated due diligence procedures, the onus is on each FFI to prove, on an individual client basis, that no client is a US citizen and/ or is subject to the US IRS. Under these specific FATCA procedures, all the firm’s clients are required to be reviewed and officially certified individually on an annual basis as being US or non US citizens and/or subject to (or not subject to) various US IRS criteria. Investors Europe is compliant with the Foreign Account Tax Compliance Act and is legally obligated to comply with these agreements and assesses an annual $150/client Audit fee for 2014. Under the type 1 Inter Government Agreement (“IGA”) signed by the Government of Mauritius, the firm is reporting to Mauritius jurisdictional authorities who will submit to the US IRS.