What is the FATCA?

FATCA (=Foreign Account Tax Compliance Act) is a U.S. tax law designed to prevent individuals or corporations with tax obligations in the U.S. (hereinafter referred to as "U.S. persons") from hiding assets and avoiding taxes by using accounts held at foreign financial institutions outside the U.S.

When opening a new account, we may ask the following customers to submit additional documents in order to confirm whether they are a U.S. person.

Individual customers:

When the identification documents or other application documents submitted by the customer contain information that suggests the possibility of the customer being a U.S. person (U.S. telephone number, address, instructions for regular fund transfers to the U.S., etc.) and it is necessary to confirm whether the customer is a U.S. person or not.

Corporate Customers:


When the identification documents, other application documents submitted by the customer or official information contain information that suggest the possibility that one of the following applies

When the customer is a financial institution located outside of Japan (excluding branches located in Japan).

When the applicant is a legal entity established for the purpose of investment or management.

When it is necessary to confirm the business entity.




We reserve the right to refuse your request to create an account, or to subject your account information to reporting to the IRS (Internal Revenue Service), depending on the status and content of your submission of the required documents.



In addition, we ask all corporate clients to select what is applicable for them from the following five items in order to confirm that the client is a U.S. person, etc. at the time of opening a new account.



(1) None of the following (2), (3), (4), or (5) applies.


▼Specific examples include the following:
General corporation (NFEE: Foreign entity from the perspective of the U.S. other than a financial institution)

Business corporation and its holding company (entities whose investment income accounts for less than 50% of their total income and whose assets generating investment income account for less than 50% of their total assets)
Publicly traded companies and their affiliates
Organizations established for religious, charitable, scientific, artistic, cultural, educational, or other purposes, or professional associations, business federations, chambers of commerce and industry, labor organizations, or other organizations operated exclusively for the promotion of social welfare.
Voluntary associations whose purpose can be confirmed by their constitution and bylaws (associations and foundations without legal capacity)
Newly established companies (within 24 months of incorporation)



(2) Financial institutions in the countries participating in the FATCA Agreement:


Financial institutions located in the FATCA signatory countries (including branches located in the signatory countries of financial institutions outside the signatory countries)



(3) Financial institutions located in countries that are not participating in the FATCA Agreement


Financial institutions that have obtained a GIIN (Global Intermediary Identification Number) or are deemed to have complied with the FFI requirements by registering with the IRS (U.S. Internal Revenue Service), establishing internal regulations, etc., even though they are located in a non-participating country.
Financial institutions that do not comply with FATCA

FFIs (*1) other than the above, such as sworn deemed-compliant FFIs (*2), owner disclosure FFIs (*3), etc.

*1 FFIs: custodian institutions, depository institutions, investment entities, specified insurance corporations, affiliated holding companies or finance companies, etc.

*2 Deemed sworn compliance FFI: An FFI that is deemed to have complied with FFI requirements only by swearing an oath to another FFI.
*3 Owner Disclosure FFI: An FFI that is deemed to have complied with FFI requirements by providing customer information to another financial institution, which in turn reports the information to the IRS.



(4) Ineligible beneficiaries


The Japanese government and its subordinate government agencies, including local governments, or organizations or institutions wholly owned by the aforementioned government agencies, etc.
The Bank of Japan and its subordinate organizations wholly owned by the Bank of Japan

International organizations
Public institutions for the purpose of industrial development
Pension funds that meet the requirements of the U.S.-Japan Tax Treaty



(5) Passive NFFEs


General corporation (NFEE: a foreign entity from the perspective of the U.S. other than a financial institution) that is primarily engaged in the investment business.


▼Specific examples include the following:

Private equity funds
Hedge funds
Venture capital
Moneylenders
Goods lessor engaged in leasing business, etc.



Even if the above applies, there may be cases that do not qualify as passive NFFE.)