Important Information about FATCA

On 18 December 2013, the Ministry of Finance announced that the Netherlands has concluded an agreement for the exchange of information with the United States of America (U.S.). This agreement, the so-called Intergovernmental Agreement (IGA), anchors the implementation of the U.S. tax code known as the Foreign Account Tax Compliance Act (FATCA) into Dutch law.

This legislation is intended to ensure that American taxpayers holding funds outside the U.S. properly file tax returns with the U.S. tax office, the IRS. As a result, financial institutions will supply relevant data of customers who may be liable to U.S. taxes to the Dutch tax authority, which will forward this information to the IRS. FATCA came into effect on 1 July 2014, requiring financial institutions to examine both existing and new customers starting from this date.

Anadolubank Nederland N.V. and FATCA Compliance

Anadolubank Nederland N.V. is a Dutch bank with a full banking license operating under Dutch law. The bank will comply with the FATCA rules as laid out in the IGA.

What Does FATCA Do?

FATCA affects business and private clients, including organizations, natural persons, and financial institutions. Almost all European countries have signed an IGA with the U.S., requiring foreign financial institutions in these countries to adhere to FATCA rules. Non-compliance (or insufficient compliance) could result in a 30% withholding tax as a penalty.

How Does Anadolubank Nederland N.V. Meet FATCA Requirements?

Anadolubank Nederland N.V. is required to:

• Screen all existing and new customers to identify whether they are covered under FATCA (classified as U.S. Persons) and report on U.S. Reportable Accounts. Customers will be categorized according to their FATCA status (e.g., U.S. Person, Non-U.S. Person, Non-Documented (Recalcitrant) Person, Non-Financial Foreign Entity, etc.).
• Report relevant information to the Dutch tax authorities for accounts used directly or indirectly by U.S. Persons. Customers who fail to provide requested information or documentation to complete their FATCA classification will also be reported.

What Does FATCA Mean for You?

FATCA applies to both natural and legal persons classified as U.S. Persons for U.S. tax purposes. The IRS describes the criteria for U.S. tax liability. You may be asked by your bank to complete a declaration if any of the following applies:

• You have an American passport or live in the U.S. (including green card holders).
• You were born in the U.S. but reside elsewhere and have not renounced U.S. citizenship.
• You have an American residential, postal address, or phone number.
• You periodically transfer money to the U.S.
• You granted power of attorney to someone with a U.S. address.
• You have a "Per Address" (P/A), companies, or organizations in the U.S. Trusts or other legal entities established in the U.S. or owned by U.S. persons also fall under this definition.

If you think you are a U.S. taxpayer, consult the IRS website or a knowledgeable tax advisor to discuss your personal tax situation. Please note that Anadolubank Nederland N.V. does not provide tax advice.

Does FATCA Apply Only to U.S. Citizens?

No. If any of the above indicia apply, you may be asked to provide further information or documentation to determine whether you are a U.S. Person.

What Type of Information or Documents Are Required?

Additional information may be collected using U.S. tax forms (known as "withholding certificates" or W-Forms) or a "self-certification" form adopted by the Netherlands Bankers Association.

What Happens If You Do Not Cooperate?

If a customer fails to cooperate when asked for additional information or documentation, Anadolubank Nederland N.V. is obligated to report the relevant data of the uncooperative person or organization to the IRS.

Can a Bank Refuse to Comply with FATCA?

If a financial institution fails to comply with FATCA, a 30% withholding tax will be applied to all U.S. payments made to that institution. Like all other banks in the Netherlands, Anadolubank Nederland N.V. will comply with FATCA requirements.

Where Can You Find More Information About FATCA?

For more information about FATCA, visit the IRS website or consult the Dutch Association of Banks (NVB). It is also recommended to contact your tax advisor for a detailed understanding of your personal tax situation.