<“The Foreign Accounts Tax Compliance Act (FATCA) is a U.S. legislation which deals with tax compliance by US persons/entities who hold financial assets in, or whose assets pass through, non-US financial institutions. Kenyans who reside in the USA and maintain bank accounts in Kenya or are American Citizens and fully operate in Kenya, This law requires all financial institutions to:
(i) Establish whether account holders are US persons/entities;
(ii) Provide information regarding U.S. persons’/entities’ accounts to the Internal Revenue Service (IRS) on an annual basis; and
(iii) Provide the IRS with additional information regarding U.S. persons/entity accounts upon request.
In order to achieve this, your Kenyan bank requires you to confirm whether you are a US Person/entity. The following criteria are used to determine whether one is a U.S. person:
(i) A U.S. citizenship (including dual citizenship holders);
(ii) Lawful permanent residency e.g. Green Card holders;
(iii) A U.S. place of birth;
(iv) A U.S. residence address or a U.S. correspondence address;
(v) Having standing instructions to transfer funds to or from an account maintained in the U.S., or instructions regularly received from a U.S. address;
(vi) Having an “in care of” or “hold mail” U.S. address in the U.S.;
(vii) A power of attorney or account mandate given to a person with a U.S. address; or
Similarly, an entity is considered a U.S. person:
(i) If shareholding of 10% or more controlled by one or more U.S. persons; or
(ii) If one’s business receives investments, trade or business income in the form of interest, dividends, rents, royalties, premium, annuities, or other periodic gains whose source is the U.S.
Failure to provide this information as requested will lead to the person being classified as UN-cooperative, and the Bank is required to withhold 30% of payments received on UN-cooperative account holders and remit it to the IRS. Non response to this communication will be taken as a confirmation that you are not a US person and the Bank will not be liable for any U.S. IRS action thereafter.”
Actually just fill W-9 and hand it to the Bank! Whoever wrote the items in italics has not had an opportunity to do business with IRS!