Like our popular “Inside the LEI” series, Alacra’s latest Reference Data Alert goes “Inside the GIIN” to detail this identifier and the universe it covers.
The GIIN or Global Intermediary Identifier Number is issued by the IRS to foreign financial institutions (FFIs) as part of the Foreign Account Tax Compliance Act (FATCA). The goal of FATCA is to reduce US tax evasion by requiring FFIs such as banks, funds, trusts, asset managers and insurance companies to report certain information to the IRS about their US accounts. While insitutions can choose not to comply with this requirement they will be subject to a 30 percent withholding tax on some of their US-sourced payments. In addition, noncompliance could be perceived as an attempt to shield US tax evaders and can create an unnecessary reputational risk for the the institution. Each of the entities is assigned one of five roles…Download your copy of Alacra’s Inside the GIIN – Issue I