The Sri Lanka Banks Association (Guarantee) Limited today informed all United States citizens living in Sri Lanka to register themselves with their respective banks so as to comply with US legislation termed the Foreign Account Tax Compliance Act (FATCA).

The Association said the legislation is extra territorial in design and required citizens to report financial assets held overseas.

“It also requires Foreign Financial Institutions (FFJs) to report to the US Internal Revenue Service (IRS) about their American/US clients, The law requires financial institutions to report more extensively on business they conduct with US persons and introduce a new reporting and withholding regime for FFIs” the newspaper notice said.

It listed the respective categories which classifies those who fall within the ambit of the law.

“A US citizen (including an individual born in the US but resident in another country, who has not renounced US citizenship); A lawful resident of the US (including a US green card holder); A person residing in the US; A person who spends a certain number of days in the US each year and US corporations estates and trusts; Any entity that has a linkage or ownership to the US or to US territories;  Non-US entitles that have at least one US Person as a “substantial beneficial owner”, the notice stated.

The Sri Lanka Banks’ Association (Guarantee) Ltd. is a Company registered under the Companies Act in Sri Lanka.