02.05 – Non-Reporting Financial Institutions

Under the UK’s regulations to implement CD and Gibraltar reporting the definition of a Non-Reporting Financial Institution is more limited than it is under the regulations to implement US FATCA. If a financial institution is a Deemed-Compliant Financial Institution for US FATCA reporting, then this does not mean that it will automatically be a Non-Reporting Financial Institution for CD & Gibraltar reporting.

For US FATCA reporting, the following types of financial institution

  • Non-Profit Organisations
  • Local Client Base Financial Institutions
  • Non-Registering Local Banks

are Deemed-Compliant, Non-Reporting Financial Institutions.

However, under the International Tax Compliance (Crown Dependencies and Gibraltar) Regulations 2014, where they qualify as Financial Institutions these institutions will not be Deemed-Compliant and will instead be Reporting Financial Institutions for CD and Gibraltar due diligence and reporting purposes.

Further details of the obligations that will be faced by these Financial Institutions is given at section 2.7 Depending on the activities and business practices of the institution some entities may be able to comply using simplified due diligence techniques.