Banque Misr succeeded in meeting all requirements of the USA Foreign Account Tax Compliance Act (FATCA), before the date announced by the USA Internal Revenue Service (IRS), according to a statement by the bank.
The bank explained that the files of FATCA were sent through the electronic data interchange system, including the number of individual American customers with total balances of over $50,000, or their equivalent in any currency. The files included also the total balances and the number of customers who refused to cooperate with the individuals or the financial organisations which do not have Global Intermediary Identification Number (GIIN).
The bank added that its branches in both the UAE and France also sent the files to the central banks in these countries on time.
Both the UAE and France have signed a governmental agreement with the IRS which allows the central banks of these countries to receive and collect data from the banks and send them to the IRS, which would liaise with the central banks in case of any enquiries related to the data received.
According to Banque Misr, work began in the bank since the end of 2013 on preparing a comprehensive programme to meet the requirements of the FATCA.
It explained that this programme included modifying the policies and procedures, and the computer system in the bank, in addition to updating the forms of Know Your Customer for individuals and companies. The programme also included training the bank staff on the executive procedures of the FATCA.
The procedures the bank completed included registering the bank, its external branches, and the financial entities affiliated to it, internally and externally, with the IRS. The procedures also included revising the data of the individual customers, and the position of the financial institutions that have accounts in the bank from registering with the IRS.
Banque Misr and its branches in both the UAE and France finished all the procedures related to applying the law, including sending the files, without using any of the international experts or the external consulting companies, or purchasing technological applications for the FATCA. The process was executed through concerted efforts and expertise of the bank’s staff, and the support of the top management.