International Financial Law Prof Blog

Editor: William Byrnes
Texas A&M University
School of Law

Friday, November 7, 2014

November's Published FATCA GIIN List Analysis

Hello Lexis FATCA / International Tax Subscribers,
I am just one weekend away from completing the 3rd edition of Lexis' Guide to FATCA Compliance.  Deep into my analysis of these challenging issues, editing, cross-referencing, and amalgamation of over 70 expert contributors analysis and perspectives (including Haydon Perryman).  All the FATCA activity this year has spawned 54 chapters of over 1,000 of legal, operational and compliance analysis.  I hope that I have been as pedantic as the previous years with catching every typo, cross reference link, footnote citation, and consistent style / grammar / punctuation. 

Meanwhile, I am remiss not to have posted Haydon Perryman of Strevus and my long running discussions about different aspects of FATCA.  I think that I bring an academic, albeit American, perspective.  He certainly brings the practical, Tier 1, institution perspective.  

Last month, the GIIN list included 104,344, a jump from the September list of 5,000 from 99,861 FFIs (mind you that a substantial number of these registrations are not unique, but instead represent affiliates within EAGs) - see our previous analysis links below.  It is now November.  The UK self-imposed (yet ignored) deadline to GIIN register passed October 25th.  So what happened?  

FATCA_rollAs of October 27, 2014 GIIN registrations reached 116,104 FFIs!  But - uh oh - not looking too good actually.  A jump of 12,000 is as good as the past three months combined, so that's indicative that FATCA GIIN registrations may be moving toward an upswing.  To reach at least a 50% level of FATCA compliance by year's end, the GIIN list must double in the next 25 days.  Likely?  Not based on the lack of support of many revenue authorities around the world (e.g. Turkey, India, China) that want to work out certain aspects and implementing regulations for the IGAs in place.   

So why did the registrations jump 12,000?  Half are from the United Kingdom FFIs trying to meet the self imposed deadline.  14,280 UK FFIs are now registered for GIINs, up from 8,463.  Mind you - Cayman Islands is still the FATCA compliance leader with 21,633, which is 7,000 more compliant FFIs than the UK.  Or is the Cayman Island financial sector just 33% larger than the UK's? I think not... 

The BRIC countries just shrugged off FATCA.  India and China competed for lethargy -10 FFIs bothered registering from China, moving it from 599 to 609, yet only 2 joined them from India (393).  My wife's country, Brazil jumped approximately 400 to 2,841, whereas Russia jumped only 10% that (about 40 new registrations to 961).

And our NAFTA neighbors?  Canada's 143 registration jump to 3,043 from 2,900 beats Mexico's mere 6 new ones (now 522). 

Non-IGA Countries = 149

Only 5,959 of these 116,104 registrations are from the 149 countries that have not had an IGA announced with the US.  That means that these 149 countries are already having a 30% FATCA chapter 4 withholding imposed by US withholding agents on most of their US financial investments. Chapter 4 withholding is on more types of income/payments than Chapter 3 withholding (albeit the harshest gross proceeds withholding is not imposed for another couple years).

Model 1A IGA              66,619

Model 1B IGA              25,847

Model 2 IGA                16,902

US & US Territories     777

download for free –> LexisNexis® Guide to FATCA Compliance

Past FATCA, GIIN, and EAG analysis by Haydon Perryman and William Byrnes 

October analysis

September analysis

August analysis

EAG July analysis

June analysis

Analysis of whom is an FFI required to register

Analysis of Soft FATCA Registration

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