What is FATCA

FATCA (Foreign Account Tax Compliance Act) is a regulation of the United States of America (USA) that imposes on foreign (non-US-based) banks and other financial institutions (e.g. insurance companies, brokerage houses, investment funds) to inform US tax authorities about accounts maintained for US taxpayers. The purpose of FATCA is to ensure that individuals and entities with US tax residence account for all their income in the US.

Therefore, Bank Millennium S.A. and other financial institutions in Poland collect and process their clients' data in order to identify accounts belonging to US taxpayers and then report information on these accounts (FAT-1) on an annual basis to the Polish tax authorities.

In the Q&A section, we present answers to the most frequently asked questions in connection with FATCA.

FATCA requirements

In accordance with the FATCA requirements, financial institutions, including the Bank, are required to:

For the purpose of identifying US reportable accounts and accounts held by excluded financial institutions, the Bank applies the verification procedures set out in the FATCA Act and the FATCA Agreement (IGA Model 1) and requires the submission of US tax residence statements, explanations and documents.

The Bank is required to obtain a statement of tax residence in the USA in connection with the opening of an account during the procedures related to its opening. It is included in the content of the bank account agreement or information about the customer (in the case of updating data).

According to the FATCA Act, this statement is made under pain of criminal liability for making false declarations and includes the clause: "I am aware of the criminal liability for making a false statement".

A customer who is a US tax resident is obliged to provide the Bank with a US Tax Identification Number (TIN). The TIN is the following U.S. tax IDs:

  • Social Security Number (SSN)
  • Employer Identification Number (EIN)
  • Individual Taxpayer Identification Number (ITIN)
  • Taxpayer Identification Number for Pending U.S. Adoptions (ATIN)
  • Preparer Taxpayer Identification Number (PTIN)

Who is a US tax resident

A US Citizen or Resident – with respect to individuals – is a person who satisfies at least one of the conditions below:
  1. Is a US Citizen (including an individual born in the US but not residing in the US – acquisition of US citizenship by birth),
  2. According to US laws is a Lawful Permanent Resident of the United States,
  3. In accordance with US immigration laws has received right of permanent residence in the US during a trip to the US or in other circumstances (Green Card),
  4. Meets the substantial presence test i.e.: Has been physically present in the US for at least 31 days in the current year and, Has been physically present in the US for 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting all the days the person was present in the current year, and 1/3 of the days the person was present in the first year before the current year, and 1/6 of the days the person was present in the second year before the current year. (i.e. from 2 years ago).
  5. Irrespective of the above also an individual whose place of residence for tax purposes in keeping with the Convention between the Government of the United States of America and the Government of the Polish People’s Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, signed at Washington on 8 October 1974 (Journal of Laws of 1976, No. 31, item 178) exists in the US shall also be deemed a US taxpayer.

Exceptions from the above rule.

A US resident is not an individual who satisfies at least one of the conditions below:

  • Is temporarily present in the US as a diplomat of another country; a representative of another government, an employee of an international organisation under a type A or G,
  • Is a teacher or trainee temporarily present in the US under a type J or Q visa and satisfies the conditions of approval of the visa,
  • Is a trainee / student temporarily present in the US under a type F, J, M or Q visa and satisfies the conditions of approval of the visa,
  • Is a spouse or unmarried child under 21 of the foregoing.