Patriot Act

Banesco USA complies with the USA Patriot Act § 326 (the Patriot Act). Please read this important information about procedures for opening a new account.

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.

What this means for you: When you open an account, we will ask for your name, address, date of birth (for individuals) and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

Internet Gambling Enforcement Act of 2006

In connection with the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) and implementing regulations (Regulation GG) issued by the Board of Governors of the Federal Reserve System and the United States Department of Treasury, certain transactions are prohibited within your account. Banesco USA is required to notify our commercial customers of this prohibition.

“Unlawful Internet Gambling” is defined in UIGEA as placing, receiving or otherwise knowingly transmitting a bet or wager by any means which involves the use, at least in part, of the Internet where such bet or wager is unlawful under any applicable Federal or State law in the State or Tribal lands in which the bet or wager is initiated, received or otherwise made.

“Restricted Transactions” are defined in Regulation GG as transactions in which funds are knowingly accepted by gambling businesses in connection with participation by others in unlawful Internet gambling. Restricted transactions are prohibited from being processed through this account or any other account you hold with Banesco USA. Restricted transactions generally include, but are not limited to, those in which credit, electronic fund transfers, checks, debit card or credit card transactions or drafts are knowingly accepted by gambling businesses in connection with the participation by others in unlawful Internet gambling and will generally be considered to be unlawful.

As a customer of Banesco USA, these restricted transactions are prohibited from being processed through your account or relationship with us.

Foreign Account Tax Compliance Act (FATCA) Alert

FATCA, enacted in 2010, creates new information reporting and withholding rules for payments made to certain foreign financial institutions (FFIs) and other non-financial foreign entities (NFFEs). Every foreign entity is classified either as an FFI or an NFFE. The FATCA rules generally become effective with respect to payments made on or after July 1, 2014.

FATCA is intended to increase transparency for the Internal Revenue Service (IRS) with respect to U.S. persons who may be investing and earning income through FFIs and NFFEs. While the main goal of FATCA is to gain information about U.S. persons, FATCA imposes a 30% withholding tax on certain payments made to FFIs and NFFEs if applicable documentation and reporting requirements are not met.

In general, after June 30, 2014, unless an exemption or a FATCA Intergovernmental Agreement applies, all FFIs will be required to enter into disclosure compliance agreements with the U.S. Department of Treasury (e.g.: FFI Agreements), under which the FFIs are required to report directly to the IRS on their U.S. accounts or be subject to the 30% withholding tax. FFIs that enter into FFI Agreements with the IRS are known as participating FFIs, and, upon registration with the IRS, will be issued global intermediary identification numbers (GIINs), which serve as proof of their participating FFI status. An FFI that does not enter into an FFI Agreement will be treated as a nonparticipating FFI for purposes of FATCA (unless an exemption or FATCA Intergovernmental Agreement applies).

All NFFEs that are not excepted under the FATCA rules (e.g. passive NFFEs) must report and/or certify as to any substantial U.S. ownership on Form W-8BEN-E, Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities) or be subject to the same 30% withholding tax.

These new reporting and withholding rules will affect account-opening processes, transaction processing systems and “know your customer” procedures utilized both by U.S. financial institutions, such as Banesco USA, and by foreign banks.

FATCA withholding responsibilities fall primarily on U.S. withholding agents, including Banesco USA, to the extent they have control, receipt, custody or disposal of a withholdable payment made to an entity that is subject to FATCA withholding. Accordingly, Banesco USA will be required to withhold and remit to the IRS a 30% FATCA withholding tax on certain withholdable payments.

Withholding agents, including Banesco USA, must annually report their aggregate FATCA withholding on Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, and file Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, with respect to each foreign person who receives a withholdable payment.

In addition, the terms of certain FATCA Intergovernmental Agreements will require withholding agents, like Banesco USA, to report to the IRS certain identifying information (e.g.: name, address, etc.) and account information (e.g.: year-end balance, etc.) concerning foreign account holders. This information will potentially be available to the tax authorities of the account holders’ countries of residency.

Banesco USA does not provide tax advice. We urge you to seek independent professional advice if you have any questions regarding FATCA or how it may affect you.