Reports Required About U.S. Citizens Investments

The measure, which will apply from July 2013, is a consequence of the Law on Foreign Account Tax Compliance (FATCA), which requires foreign banks to sign an agreement with the Internal Revenue Service (IRS), and report this to their customers, U.S. citizens - so that they can authorize information sharing about their accounts.

If the client refuses to give permission, the bank must close the account, in order to avoid being penalized by withholding 30% from interest, dividends or profits transferred to them from the United States.

Analysts recognize that the implementation of this measure by financial companies will be complex and costly, and there are still many questions to be clarified, but in general are all of them can be answered with the recommendation that the necessary agreements be signed with the IRS, in order to avoid being placed at a disadvantage in respect to those operators that do.

Recommended reading on this topic is provided in an analysis by Procopius: "FATCA: Its meaning and relevance to the financial and corporate sectors in Mexico and Latin American with contacts in the United States "

Source: Procopio.com

More on this topic

FATCA Extends to Corporations

October 2011

Legally registered companies must also report to the tax authorities of the U.S.

This new measure will be taken to comply with the Foreign Account Tax Compliance Law (FATCA, for short), which requires information disclosure by companies where a U.S. citizen is involved.

In addition, banks who hold deposits belonging to North American clients must also report to the Internal Revenue Service (IRS), and entities that do not will be subject to a retention of 30% on the interest and dividends generated.

Doubts Over Foreign Account Tax Compliance Act

April 2012

There is still uncertainty among U.S. citizens and companies abroad, regarding the effects of this law’s extraterritorial reach.

The start of registration stipulated by FATCA law (Foreign Account Tax Compliance Act) of the United States is January 1st, 2013, with enforcement beginning on 1st July of that year.

Legal Tender in Honduras: Canadian Dollar and Yuan

April 2012

The Central Bank of Honduras said the Canadian dollar and the yuan, have been added to the list of currencies that can be deposited in foreign currency accounts.

The business sector will directly benefit from by this measure, which facilitates trade with the countries issuing those currencies.

Reorganization of Thales Securities Successfully Completed

August 2011

The National Securities Commission of Panama has decided to return the management and control of the brokerage firm to its shareholders, as this will facilitate the institution’s return to operations efficiently and safely.

In its resolution, the commission describes the reorganization of Thales Securities as ‘satisfactory’.