While AMCs have been successful in making a majority of their investors FATCA compliant, they are awaiting Central Board of Direct Taxes (CBDT) nod on freezing non-FATCA accounts as the August 31 FATCA deadline approaches.
“Around 95% of our investors are FATCA compliant now. The industry has also completed it largely. We are trying to reach out to investors who have not submitted their FATCA details,” said the operations head of a private sector fund house. .
“We are hopeful that CBDT will allow us to freeze these accounts. In our case, more than 90% of our investors are FATCA compliant,” said the operations head from a large fund house.
To expedite the process, R&Ts have introduced online facility for distributors and investors to update their FATCA information. To comply with FATCA norms, investors have to provide information like place of birth, PAN and tax residency.
Cafemutual had first reported that AMFI had approached CBDT for freezing non-FATCA compliant accounts rather than enforcing redemption. Freezing of accounts means further transactions will be allowed only after these accounts are FATCA compliant.
Meanwhile, the industry is hopeful that CBDT will accept AMFI’s request to freeze non-FATCA accounts.
