The Central Bank of Egypt (CBE) has decided to form two committees to study the application of Foreign Account Tax Compliance Act (FATCA), slated to be in effect by the beginning of next year, during its meeting, headed by CBE’s sub-governor Gamal Negm, yesterday with chairmen of banks and officials of compliance departments, an official source said.
The first committee will study the legal and legislative aspects of applying the law in Egypt and the second will be responsible for providing information about the customers’ accounts and the required data.
CBE called on all local banks to adjust their positions locally to comply with FATCA which is a U.S. law aims at combating offshore tax invasion through forcing banks and institutions in the other countries to disclose data and information of U.S.citizens to pay the due taxes to the Internal Revenue Service (IRS). It requires banks and institutions to enter into an agreement with the IRS to identify their U.S. account holders and to disclose the account holders’ names, TINs, addresses, and the accounts’ balances, receipts, and withdrawals.
