This document summarizes a presentation given by Syed W Quadri, CPA on December 23, 2013 from 10am to 12:30pm at the EIBFS Sharjah Campus. The presentation provided an introduction to FATCA for UAE banks and financial institutions, covering key topics such as the US economic metabolism, sources and applications of US dollars, an overview and history of FATCA, FATCA requirements for entities in the UAE, the FATCA registration and reporting process, and consequences of non-compliance. It aimed to increase understanding of FATCA regulations, implementation, and compliance for the UAE financial industry audience.

1. Date: December 23, 2013
Time: 10am to 12:30pm
Venue: EIBFS Sharjah Campus
Presented By: Syed W Quadri, CPA

2. INRODUCTION
Syed W. Quadri, CPA
-
-
Baruch College, New York, USA
Practicing CPA since 1992
Specialize in US Tax Resolution
Core concentration in FBAR/FATCA Matters
Corporate training and advisory engagements from US Tax perspective
Parallel profile of product development with leading Banks & FIs
Global institutional and individual client base
US Regulatory and Congressional representation
Treaty based US/International tax consulting
UAE, USA and Europe

3. ECONOMIC METABOLISM OF USA
 Population, GDP, Budget Deficit…
 Stock market collapses, Dot com bubble bursting,
Credit crises, ObamaCare…
 SoX, HOPE, HERA, FATCA, Dodd-Frank…

4. USAs $ Earned & Spent
Sources
 Business Income Tax
 Personal Income Tax


Excise Tax
Trade & Export
Applications
 Interest & Loan Servicing


Social Security Disbursement
Health Care
 Defense

Infrastructure & Development

5. What.Where.When
of
FATCA
Reporting

6. FATCA BEYOND KYC & AML
 Independent Guideline
 Globally Regulated
 Uniquely Structured
 Account Centric
 Country Specific
 Mandatory Compliance
 Consequences

7. CRUX OF FATCA REGIME
 Global Accessibility (Internet / Electronic World)
 Americans Abroad (7m citizens + GC Holders + Other)
 Over Trillion US Corporate
$ Stuck Overseas
 Holocaust Survivors (subjected to income & bank a/c report)
 Non-Compliance (TIEA= Tax Information Exchange Agreement)

8. It All Boils Down to…
US Income Tax Act 1913

9. FATCA EFFECTING US TAXES
Personal / Individual
Business
Fiduciary (Estate & Trust)

10. FATCA ANALYSIS
 Cost - Over $25B (implementation)
 Time - Over 5-7 years
 Efforts - Global
 Players - Over 150 Countries, 700,000 Banks & FFIs & 21M US Persons
 Outcome - immediate/long term,
tangible/intangible

11. Measures In Effect
 Schedule B Disclosure (majority do not answer)
 Foreign Bank Account Reporting (FBAR BSA 1970 / USC Title
31/FinCEN is responsible & Amnesty resulted in under 50,000 filings in total)
 Global Income Reporting (Yearly Exclusion)
 FATCA Filing (Form 8938)
 Tax Treaties

12. Pre FATCA Warm Up
 Penalized UBS $760M
 Closed Vegelin & Company
 Prosecuted HSBC India $1.9B
 Several more to become public

13. FATCA Life Cycle - Elements
 Governments – IGA (Model 1 or 2)
 Bank/FFI – Agreements (Model 2)
 Government & FFI – Implementation (Model 1 & 2)
 Government & FFI – Compliance (Model 1 & 2)

14. What is FATCA
Foreign Account Tax Compliance Act 2010 (F.A.T.C.A.)
FATCA will require Foreign Financial Institutions to report the IRS either
directly OR through their respective Governmental agency, information about
financial accounts held by U.S. taxpayers, or held by foreign entities in which
U.S. taxpayers hold a substantial ownership interest.
Under FATCA, U.S. Taxpayers with specified foreign financial assets that
exceed certain thresholds must report those assets to the IRS. This reporting
will be made on Form 8938 and attached to their federal income tax return.

15. FATCA FINAL REGULATION
(Internal Revenue Service 26 CFR Parts 1 and 301 [TD 9610])
Relating to Information Reporting
by
UAE Banks and Financial Institutions
and
Withholding/Remitting on Certain Payments
to
U.S. Persons, Foreign Financial Institutions & Entities

16. Date: December 23, 2013
Time: 10am to 12:30pm
Venue: EIBFS Sharjah Campus
Presented By: Syed W Quadri, CPA

17. Date: December 23, 2013
Time: 10am to 12:30pm
Venue: EIBFS Sharjah Campus
Presented By: Syed W Quadri, CPA

18. FATCA UPDATE FOR UAE
Implementation & Compliance
 Government
 Banks, Financial Institutions & Insurance Companies
 Preexisting Accounts (individual & entity)
 New Accounts (individual & entity)
 Time Line

19. FATCA Requires from UAE Financial Arena
 Register (Form 8957 – FATCA ID & GIIN)
 Identify (Form W8 & W9)
 Segregate (not reportable, reviewable & reportable)
 Communicate / Consent
 Review
 Report (Form 8966 – Preexisting & New Accounts)
 Withhold (30% Backup Withholding)
 Tax Filing (Form 1042)
 Internal Certifications (Responsible Person)
 Compliance Audit/Examination (IRS, External/CPA)

20. Scope of FATCA for UAE

21. FATCA PLAYERS WITHIN UAE
(Possible Administrative Structure)

22. FATCA FACILITATORS IN UAE
 Internal Revenue Service (IRS-Referee)
 Withholding Agents (WA)
 Qualified Intermediaries (QI)
 Withholding Foreign Partnerships (WfP)
 Withholding Foreign Trusts (WfT)

23. FATCA Reporting by UAE Banks
 Backup Withholding
(in coordination with section 3406 for recalcitrant US persons)
 Traditional 1099 Int/Misc & 1096
(in coordination with chapter 61)

24. FATCA Application - UAE BANKS & FIs
 Treatment of Reporting Partner Financial Institution
 Suspension of Rules Relating to Recalcitrant Accounts
 Specific Treatment of Retirement Plans
 Identification & Treatment of Deemed-Compliant FIs
and Exempt Beneficial Owners
 Special Rules Regarding Related Entities That Are
Non-Participating Financial Institution

25. FATCA BENEFICIARIES
 US Government/Economy (Extremely)
 UAE Government (Fairly)
 UAE Banks, Financial Institutions & Insurance
Companies (Somewhat)
 U.S. Persons & Specified U.S. Persons in the UAE
(Not At All)

26. SUMMARY OF
WHAT IS NEW WITH FATCA?
(UAE FINANCIAL INDUSTRY CENTRIC)
 Obtain & Exchange Information - Reportable Accounts
1- Preexisting (individual & entity)
2- New (individual & entity)
 Time & Manner of Exchanging Information
 Collaboration On Compliance & Enforcement

27. FATCA ID
Each registering Bank, Financial Institution and
Insurance Company in the UAE will be provided a
FATCA ID that will be used for purposes of establishing
and accessing the it’s online FATCA account. For all
applicant entities other than Member FIs, the FATCA ID
is a randomly generated six-character alphanumeric
string. For Member FIs, the FATCA ID will be comprised
of 12 characters: the first 6 characters will be the Lead
FATCA ID, followed by a period, and the last 5 characters
will be alphanumeric and assigned sequentially to each
Member.

28. GLOBAL INTERMEDIARY IDENTIFICATION NUMBER
(GIIN)
In response to submitting Form 8957 registering Banks,
Financial Institutions and Insurance Companies in the
UAE will receive a notice of registration acceptance and
will be issued a global intermediary identification
number (GIIN). The IRS will electronically post the first
IRS FFI List by June 2, 2014 and will update the list on a
monthly basis thereafter. To ensure inclusion in the June
2014 IRS List, an entity will need to finalize its
registration by April 25, 2014.

29. FATCA TERMINOLOGIES & UPDATED UAE CENTRIC ARTICLE
Please take your copy of both

30. FATCA RELATED
ADVISORY, CONSULTING & OTHER SERVICES
 Governments
 Banks & Financial Institutions - Model 1
 Banks & Financial Institutions - Model 2
 US Taxpayers/Persons/Entities - Unsolved Tax Matters
 Compliance/Financial Audit & Certification
 Workshops and Seminars (Online & In-Person)
 TeleConferences and Webinars

31. TAKEAWAY
Relative Understanding
of FATCA;
REGULATION
IMPLEMENTATION
COMPLIANCE

32. How to reach me…
Via Email:
squadri@mazcpa.ae
squadri@swqpc.com
Telephone:
+971 50 1696223 & +971 4 3888303 UAE
+1 516 236 9109 & +1 800 469 0198 USA
 UAE:
 USA:
2401 Al-Attar Tower, Dubai UAE
380 North Broadway, Suite 408
Jericho, NY 11753 USA

33. Q&A
FATCA
Life Cycle 2013

34. UPCOMING FATCA FOCUS EVENTS









InterGovernmental Agreements - IGAs (Model 1 & 2)
FFI Agreements (Model 2)
Implementation Road Blocks & Bottle Necks
In-depth Compliance Structure
UAE Banks, Financial Institutions & Insurance WITH
Global existence.
Withholding
US Tax Reporting & Filing
U.S. Person’s Perspective
Non-Compliance Consequences

35. End of
FATCA
life cycle 2013
Thank you !!!
With U less FATCA Stressed 2014