The Insurance Authority instructs the companies in the sector to implement the FATCA Act
Mr. Ibrahim Obaid Al-Zaabi, Director General of the Insurance Authority (IA) said that the measures taken by the IA to implement the FATCA Act included the issuance of a circular in December 2013 on the implementation of the requirements of the Foreign Accounts Tax Compliance Act (FATCA) in the UAE. The circular instructed all insurance companies to determine the accounts that are subject to the FATCA requirements as per the FATCA definition of such accounts and to adopt the due procedures towards customer and accounts. The companies were asked to be ready for electronic linkage for reporting on relevant accounts and to register through the website of the US Internal Revenue Service (IRS) and obtain a Global Intermediary Identification Number (GIIN under the RDCFFI category.
The IA also issued a circular in July 2014 to remind insurance companies subject to FATCA of the need for compliance and to register through the US IRS website. The response by the companies was excellent.
Mr. Zaabi explained that for the purposes of raising awareness of the requirements, mechanisms and procedures of compliance by the insurance companies, the IA held a workshop specializing in FATCA applications in collaboration with a specialized firm. All relevant companies were invited to attend the workshop, which addressed an introduction to the US FATCA applicable to foreign companies and educate insurance companies about the requirements to comply with the Act.
The IA has also completed the drafting of the final version of the toolkit for the application of FATCA for insurance companies regulated by the Insurance Authority in order to enable them to perform their obligations under FATCA.
Abu Dhabi (Al-Ittihad), 16/02/2015