FATCA & CRS Policy

Policy Statement

The Company is committed to full compliance with the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS). This policy establishes the framework and procedures to identify reportable accounts, ensure accurate reporting, and maintain compliance with tax information exchange obligations under Indian and international law.

Objective

• Ensure compliance with FATCA and CRS regulations as implemented by the Government of India and the Central Board of Direct Taxes (CBDT).
• Identify and report foreign financial accounts and tax residency information accurately.
• Prevent tax evasion and promote transparency in cross-border financial transactions.
• Define responsibilities of employees involved in customer onboarding, data management, and reporting.

Regulatory Framework

• Foreign Account Tax Compliance Act (FATCA), U.S. legislation enacted in 2010.
• Common Reporting Standard (CRS), OECD initiative for global tax transparency.
• Indian Inter-Governmental Agreement (IGA) with the United States under FATCA.
• Income Tax Act, 1961, and related CBDT notifications and guidelines.
• Guidelines issued by the Financial Intelligence Unit (FIU-IND) and Ministry of Finance.

Scope and Applicability

This policy applies to all business lines, departments, and employees of the Company involved in client onboarding, account management, and financial reporting. It covers both individual and entity accounts that fall under the FATCA or CRS definitions of reportable accounts.

Key Definitions

• FATCA: A U.S. law requiring foreign financial institutions (FFIs) to report information about accounts held by U.S. persons or entities with substantial U.S. ownership.
• CRS: A global standard developed by the OECD for automatic exchange of financial account information between participating jurisdictions.
• Reportable Account: An account held by a person or entity resident in a reportable jurisdiction under FATCA or CRS.
• Financial Institution (FI): Any entity that accepts deposits, holds financial assets, or provides investment or insurance services.

Customer Onboarding and Due Diligence

As part of Know Your Customer (KYC) and Customer Due Diligence (CDD) procedures, the Company shall collect and verify tax residency information from customers at the time of onboarding.

• Obtain self-certification of tax residency from all customers.
• Identify and flag potential U.S. persons and foreign tax residents.
• Validate Tax Identification Numbers (TINs) and other supporting documents.
• Maintain adequate records of self-certifications and supporting documentation for at least 8 years.

Identification of Reportable Accounts

The Company shall use the following indicators (U.S. indicia and foreign tax residency indicators) to identify reportable accounts:

• U.S. citizenship or residency.
• U.S. place of birth or mailing address.
• Standing instructions to transfer funds to an account maintained in the U.S.
• Power of attorney or signatory authority granted to a U.S. resident.
• Telephone numbers in multiple jurisdictions indicating foreign residency.

Reporting Obligations

The Company shall submit all FATCA and CRS reports to the Central Board of Direct Taxes (CBDT) through the prescribed online portal within the stipulated timelines. All reports must include details such as account balances, interest, dividends, and other income paid to reportable persons.

The Compliance Officer shall ensure timely and accurate submission of FATCA/CRS returns and maintain audit trails of reported data.

Data Privacy and Confidentiality

All customer information collected under FATCA and CRS shall be handled in compliance with the Digital Personal Data Protection (DPDP) Act, 2023, and applicable data privacy laws. The Company shall ensure that data shared with regulatory authorities is transmitted securely and used solely for compliance purposes.

Roles and Responsibilities

• Board of Directors: Provides oversight and approves the FATCA/CRS compliance framework.
• Principal Officer: Acts as the primary point of contact with tax and regulatory authorities.
• Compliance Officer: Monitors compliance processes, reporting timelines, and employee training.
• Employees: Responsible for accurate customer data collection and prompt escalation of discrepancies.

Training and Awareness

All relevant employees must undergo periodic training on FATCA and CRS obligations, reporting procedures, and data management practices. Training records shall be maintained by the Compliance Department for audit and verification.

Non-Compliance and Penalties

Failure to comply with FATCA/CRS requirements may result in penalties imposed by regulatory authorities, reputational damage, and possible termination of business relationships. Employees found responsible for deliberate non-compliance shall be subject to disciplinary action, including termination.

Policy Review

This policy shall be reviewed annually or whenever there are regulatory updates issued by the CBDT, OECD, or other competent authorities. Revisions shall be approved by the Board of Directors and communicated to all relevant personnel.

Employee Acknowledgment

I acknowledge that I have read and understood the Foreign Account Tax Compliance Act (FATCA) / Common Reporting Standard (CRS) Policy of the Company I agree to comply with the provisions outlined and support the Company's commitment to tax transparency and regulatory compliance.

Employee Name: __________________________

Signature: ______________________________

Date: _________________________________