Regulatory

FATCA (Foreign Account Tax Compliant Act)

Obligations of TBI Bank JSC under FATCA are in accordance to the Law on Ratification of the Agreement between the Government of the Republic of Bulgaria and the Government of the United States of America for improving the tax compliance internationally and enforcement of Foreign Account Tax Compliant Act (FATCA), adopted by the US Government on 18.03.2010.

Essentially, FATCA represents a legal requirement to foreign financial institutions, including all Bulgarian financial institutions, to identify US taxpayers among its customers and to provide information to US tax authorities on supported by them financial accounts, including accounts of foreign legal entities that are controlled by US taxpayers.

In order to be considered as compliant with FATCA, financial institutions in the country should register with the Internal Revenue Service of the United States (IRS) and acquire a Global Intermediary Identification Number (GIIN) code.

TBI Bank JSC is registered on the website of the IRS with FATCA status of a participating financial institution under Reporting Model 1 FFI and has assigned GIIN code: ABQT26.99999.SL.100 (and TBI Bank JSC – Romania Branch GIIN code is: ABQT26.99999.BR.642).

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CRS (Common Reporting Standard)

Global standard for automatic exchange of financial information through the conclusion of intergovernmental agreements

In 2014 the Organization for Economic Cooperation and Development (OECD) publishes a global standard for automatic exchange of information regarding financial accounts. Essentially, the so called Common Reporting Standard (CRS) is a regulatory requirement for collection and submission of information in the field of taxation on behalf of financial institutions in participating jurisdictions (currently, more than 100 jurisdictions). Its purpose is to establish, restrain and prevent cases of tax evasion. In December 2014, CRS is implemented in Directive EC 2014/107 of European Union (EU) regarding the automatic exchange of information in the field of taxation. EU countries are obliged to supplement their legislation with the provisions enshrined in the Directive and the inter-state multilateral agreement. In Bulgaria this standard is implemented with the change of the Tax and Social Security Procedure Code (TSSPC) dated August 2015 and entered into force since 01.01.2016. According to the provisions of Art.142 of the TSSPC, the banks in Bulgaria are obliged to apply enhanced due diligence procedures towards all financial accounts of its clients in order to identify the financial accounts which fall within the scope of TSSPC and within the scope of international agreements and to submit yearly information to the national tax authorities – The National Revenue Agency (NRA). By virtue of the signed international agreements (FATCA and CRS) and in accordance with the requirements of the Bulgarian legislation (the Credit Institutions Act and the Tax and Social Security Procedure Code), as of 01.01.2016, TBI Bank JSC, in its capacity of a reporting financial institution, applies the procedures for enhanced due diligence and control of the financial accounts, collects data for tax purposes from its clients and accordingly provides personal data and financial information about them to NRA.
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