FATCA/CRS

Banks and other financial institutions are required to identify all customers who are tax resident in a country other than Denmark. This applies to both private customers and legal persons.

If you have been asked to complete our combined FATCA/CRS Self-Certification Form, you may have some questions about it. Therefore, we have created this FAQ page providing you with information about FATCA and CRS tax legislation, as well as about self-certification, the reporting process and the consequences of non-compliance.
 
FATCA legislation and applicability

What is FATCA?
FATCA is an acronym for Foreign Account Tax Compliance Act, which aims to counter tax evasion in the United States. All Nordic countries have signed an agreement with the US authorities concerning the exchange of information about customer who are in scope for reporting. Denmark has implemented obligations concerning the exchange of information in its national legislation.

What does FATCA mean in practice?
All financial institutions in Denmark are required to comply with the requirements of FATCA. However, it should be noted that the approach may differ between them. Financial institutions have different approaches as to how they collect information from customers in order to verify their FATCA/CRS status. This is why the self-certification forms may differ between banks.

Danske Bank asks all its new customers and some of its current customers about their tax residency. If a customer is fully liable to pay tax outside Denmark, he/she is required to provide Danske Bank with a valid foreign Taxpayer Identification Number (TIN)Danske Bank.

Customers, who have been identified as liable to pay taxes in the United States, will be reported to SKAT in May each year. The same applies to customers where US indicia have been found, see below, and who do not respond to our enquiry.

The report to SKAT will contain information about account balances and income received on accounts which are in scope for reporting.

Why have I received a letter and questions about US tax liability?
The bank is obligated to search for indicia, which indicate that a potential tax liability in the USA. This includes e.g. US citizenship, a US address or phone number.


The following information in the banks records results in us contacting you:

Customer information Curing documentation to avoid being reported

US place of birth or US citizenship

Self-certification form, non US passport & certificate of loss of nationality

Green card

Self-certification form and non US passport

US mailing or residence address

Self-certification form and non US passport

US phone number

Self-certification form and non US passport

Standing order to transfer fund to a US account

Self-certification form and non US passport

Person with a US address has been granted power of attorney to manage the accounts

Self-certification form

Care of or hold mail address

Self-certification form



I am a US tax resident. How does FATCA affect me?

FATCA means that Danske Bank will send information on your accounts to the tax authorities. You are responsible for making sure that you complete your tax return(s).

My child is a US tax resident. How does FATCA affect it?
Minors are not exempt from reporting under FATCA. If your child is a US tax resident and a customer of Danske Bank, we would need the same information about your child as about you.

I was born in the United States. How does FATCA affect me?
If you were born in the United States and you have not renounced your US citizenship, you are in scope for FATCA reporting.

I have informed Danske Bank that I was a US tax resident. I am not anymore, what should I do?
If you previously have informed us that you were a US tax resident, but are not anymore, you need to send a self-certification form to Danske Bank with information about your current tax residency. Additional documentation may also be needed, see above.