FATCA news from the Kingdom of Jordan

Al-Wasat News, Bahrain’s first independent newspaper, reports on a FATCA seminar held by Deloitte in Jordan. Unfortunately I don’t think we have any Arabic speakers among our readers or commenters who could read the original Arabic article, but you can always try to puzzle your way through Google Translate’s English rendering of it. Deloitte also has an English-language press release about a FATCA seminar they held in Jordan early last month, which may be referring to the same event.

Unsurprisingly, Deloitte is urging banks to comply with FATCA, and of course offering Deloitte’s consulting services to help them become compliant. One Deloitte partner in Oman was quoted as stating, roughly: “the principle of competition forces the banks of Jordan to cooperate closely with the banks and the Central Bank in order to become compliant with the law of FATCA”. There are no quotes from any actual bankers in Jordan, so it’s hard to judge the on-the-ground reaction. (We’ve written previously about Lebanon’s hostile reaction to FATCA).

I’m very curious to know whether Deloitte and all these other cross-border tax services firms are mentioning the “local FFI” option at all to their clients — a form of “deemed compliance” would allow banks and other institutions to avoid having to report any of their account-holders to the IRS, as long as they could comply with some rather onerous requirements (such as proving that 98% of account-holders are local residents and not advertising U.S. dollar accounts on their websites).

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2 thoughts on “FATCA news from the Kingdom of Jordan

  1. Eric, have you seen “not advertising US Dollar accounts” in any of the FATCA literature? If so, then this is currency controls plain and simple.

  2. @geeez: why, it’s right there at page two hundred and ninety-nine in the 8 February draft regulations. How could you have missed it šŸ™‚

    The FFI must not solicit account holders outside its country of incorporation or organization. For this purpose, an FFI will not be considered to have solicited account holders outside of its country of organization merely because it operates a website, provided that the website does not specifically state that nonresidents may hold deposit accounts with the FFI, does not advertise the availability of U.S. dollar denominated deposit accounts or other U.S. dollar denominated investments, and does not target U.S. customers

    The idea of becoming a “local FFI” seems to be gaining traction in New Zealand, for example (see link).

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