Financial Planning services for members
CCEC members may be referred to the Co-operators who offer a free, no-obligation assessment of their financial situation. As we all know some minor adjustment can lead to major benefits.
Phone CCEC at 604.254.4100 for more info or email to email@example.com
FATCA for U.S. Persons
FATCA (the Foreign Account Tax Compliance Act) is a United States law requiring financial institutions around the world to collect and submit financial information to U.S. authorities on U.S. persons living outside of the United States.
While CCEC must comply with the law, we are committed to protecting our members’ right to privacy. CCEC is a small credit union and exempt from the FATCA reporting requirements.
Larger credit unions register as a Local Client Base financial institution, which significantly reduces the impact of FATCA on the majority of our members. As a result of Local Client Base classification, most credit unions only need to collect FATCA information and report on member accounts held by non-Canadian residents.
We provide the following information to those maintaining accounts at other credit unions.
How it works
Under an agreement made between the Canadian and U.S. governments, all financial institutions in Canada are legally required to collect and submit financial information on U.S. persons living outside of the United States. Canadian financial institutions began gathering FATCA-related member information on Tuesday, July 1, 2014.
In accordance with the law, most credit unions submit the information to the Canada Revenue Agency (CRA), which then forwards this information to the U.S. Internal Revenue Service (IRS).
Is your privacy affected?
FATCA may affect you.
According to FATCA, you are considered a U.S. person if you are:
- A citizen of the U.S. (including those born in the U.S. but resident in Canada or another country, who has not renounced U.S. citizenship)
- A lawful resident of the U.S. (including a U.S. green card holder)
- A person residing in the U.S.
- An individual who spends a considerable amount of time in the U.S. on a yearly basis.
PLEASE NOTE: This is not an inclusive list. Please consult a tax professional for advice on your personal situation.
U.S. corporations, estates and trusts may also be considered U.S. persons and some transactions may fall within the U.S. person definition, such as standing instructions to transfer funds to an account maintained in the U.S. and frequent transfer/receipt of funds from a U.S. country or territory.
FATCA regulations do not require financial institutions to collect and submit information for every type of account. As a Local Client Base financial institution, most credit unions are only required to collect FATCA information and report on member accounts held by non-Canadian residents who are considered U.S. persons.
In addition, the account types and financial products below are also exempt from FATCA:
- Registered Retirement Savings Plans (RRSPs)
- Registered Retirement Income Funds (RRIFs)
- Registered Disability Savings Plans (RDSPs)
- Tax-Free Savings Accounts (TFSAs)
- Personal accounts with a balance of less than USD$50,000
- Business accounts with a balance of less than USD$250,000
- Credit cards with credit limits of less than USD$50,000
- Prepaid cards with funds of less than USD$50,000.
There are individuals and groups challenging FATCA as an invasion of personal privacy and being in contravention of the Canadian constitution.