Privacy and security

Understanding FATCA

FATCA (the Foreign Account Tax Compliance Act) is a United States law requiring financial institutions around the world to collect and share account information pertaining to United States citizens and/or residents living outside the United States.

How it works

All financial institutions in Canada are required to identify and report annually on financial accounts held by United States persons. Vancity is required by law to report this account information to the Canada Revenue Agency (CRA), which then forwards this information to the United States Internal Revenue Service (IRS).

What will change July 1, 2017

Vancity and other Canadian financial institutions began gathering FATCA-related member information in July 2014. As of July 1, 2017, Vancity will be required by law to ask our members to self-certify their tax residency each time we open a new account or when we are made aware of a change in tax residency.

Who is affected

According to FATCA, you are considered a United States person if you are:

A citizen of the United States (including those born in the United States but resident in Canada or another country, who has not renounced United States citizenship)
A lawful resident of the United States (including a United States green card holder)
A person residing in the United States
An entity, e.g. a business or non-profit, that is a tax resident of the United States or is a passive entity with one ore more controlling persons who are United States reportable persons.
An individual who spends a considerable amount of time in the United States on a yearly basis.

PLEASE NOTE: This is not an inclusive list. Please consult a tax professional for advice on your personal situation.

United States corporations, estates and trusts may also be considered United States persons and some transactions may fall within the United States person definition, such as standing instructions to transfer funds to an account maintained in the United States and frequent transfer/receipt of funds from a United States country or territory.

Account exemptions

FATCA regulations do not require financial institutions to collect and submit information for every type of account.

The account types and financial products below are exempt from FATCA:

Registered Retirement Savings Plans (RRSPs)
Registered Education Savings Plans (RESPs)
Registered Retirement Income Funds (RRIFs)
Registered Disability Savings Plans (RDSPs)
Tax-Free Savings Accounts (TFSAs)

PLEASE NOTE: This is not an inclusive list. To confirm whether your Vancity account is exempt from FATCA reporting requirements, please contact us.

Our commitment to privacy

Ensuring member privacy is a top priority for us. As a Canadian financial institution, we comply with applicable Canadian laws and regulations while maintaining our members’ privacy. If you have a privacy concern or complaint, please call 604.877.8479 to speak with the Privacy Office. Learn more about our commitment to member privacy here.

Learn more

For more information on FATCA, including FAQs and resources, please visit Canada Revenue Agency’s enhanced financial account information reporting page.

In addition to FATCA, United States persons are subject to additional American reporting and tax obligations on income and asset reporting, including filing annual tax returns and other information with the United States government. Please consult a tax professional about your obligations as a United States person living abroad.

Common Reporting Standard regulations in effect July 1, 2017. We explain it here.