Hong Kong financial institutions with mainland affiliates are hoping Beijing signs an agreement with Washington soon on a new US tax disclosure law, because of concerns mainland financial institutions will otherwise find it difficult, if not impossible, to comply with the new law.
We have observed that in China, financial institutions are waiting for more information on an IGA (intergovernmental agreement) before registering [to comply with Fatca],” said Florence Carr, Asia-Pacific Fatca lead at accounting firm EY.
HSBC spokesman Gareth Hewett said it had decided that the whole group should be “Fatca-compliant”.
“Achieving compliance with Fatca by July 1 is a requirement,” he said. “Achieving this is in line with our ambition to be the world’s leading international bank.”