Hong Kong’s Securities & Futures Commission (SFC) has recently made inquiries of Hong Kong Financial Institutions regarding their compliance with FATCA Responsible Officer (RO) certifications. The SFC has reached out to financial institutions on overdue certifications and questioned the reasons for non-compliance, along with remediation actions and timeline to complete. Non-compliance with FATCA requirements can potentially carry a penalty of 30% withholding tax on US sourced income imposed by the US Internal Revenue Service (IRS).
This guidance provides a summary of the SFC’s recent activities related to RO certification compliance as well as an overview of the responsibilities of ROs and key questions that ROs should be addressing. KPMG provides a range of services to support financial institutions’ FATCA frameworks that are tailored to their specific circumstances.