Fund houses can heave a sigh of relief as the Ministry of Finance has extended FATCA compliance deadline.
In a press release, Ministry of Finance(MoF) has told financial institutions not to close non-FATCA compliant accounts. The MoF has not disclosed the new deadline for FATCA compliance and said that the revised timeline for completing due diligence will be notified in due course.
This means, there will be no impact on the accounts opened between from 1 July, 2014 to 31 August, 2015.
“India and the United States are discussing the alternative procedures to permit a few month extension of time for completing the due diligence and not requiring account closure within one year of entry into force of the agreement (i.e., August 31, 2016). In the interim, financial institutions should continue to work on completing the required due diligence, including obtaining self-certifications,” states the release.
Financial institutions, including mutual funds, are required to obtain the self-certification of all individual and entity accounts opened from 1 July, 2014 to 31 August, 2015.
