AmCham BiH Data Protection Business Briefing
Sarajevo, May 10th 2016. - American Chamber of Commerce in BiH, in cooperation with its member Karanovic & Nikolic organized a business briefing today on Data Protection.
AmCham BiH held a Briefing on Foreign Account Tax Compliance Act (FATCA) application in BiH
Sarajevo, 18.02.2016.godine - American Chamber of Commerce in Bosnia and Herzegovina in cooperation with its member CMS Reich - Rohrwig Hainz, held a briefing on Foreign Account Tax Compliance Act (FATCA) application in BiH.
FATCA is a United States federal law whose intent is to enforce the requirement for United States persons (including those living outside the U.S.) to file yearly reports on their non-U.S. financial accounts to the Financial Crimes Enforcement Network (FINCEN). The law requires all non-U.S. (foreign) financial institutions (FFI's) to search their records for indicia indicating U.S. person-status and to report the assets and identities of such persons to the U.S. Department of the Treasury. The main reason for FATCA is collecting information with respect to US taxpayers in the world. So, the goal is to avoid tax evasion, as US authorities in their investigations came to the realization that the taxpayers of the United States by foreign banks managed to hide billions of dollars in order to avoid paying taxes. Law FATCA also complements the regulations against money laundering and terrorist financing or other forms of financial crime, which also requires the collection and exchange of personal data and a process known as KYC rules or get to know your client.
The representatives of CMS Reich - Rohrwig Hainz from Sarajevo and Ljubljana discussed about the application of FATCA in BiH, presenting a parallel way on how the regulation applies to the neighboring countries and jurisdiction, with particular reference to Slovenia an EU member country.
The Ministry of Finance and Treasury in BiH submitted during the briefing the current steps in concluding the agreement with the Government of the United States in order for BiH to begin implementing the US tax regulations FATCA, and presented their thoughts on which models should BiH accept in the process of implementation the new US act. The Agency for Protection of Personal Data presented the practices of the Agency regarding the FATCA law in BiH. The Banks Association of Bosnia and Herzegovina talked about the impact of FATCA regulations and problems that the banks in BiH have when it comes to the implementation of FATCA in BiH.
The conclusion of today's briefing is that most financial institutions in Bosnia and Herzegovina finds it difficult in complying with FATCA regulation in the view of the local legislation, and that it is necessary as soon as possible to access the selection of a suitable model and the signing of an agreement between the United States and Bosnia and Herzegovina, in order to create a legal mechanism and protect domestic financial institutions.