The Foreign Account Tax Compliance Act (FATCA) is US tax law enacted on March 18th, 2010. The purpose of the legislation is to prevent a perceived tax abuse by U.S. persons through the use of off-shore financial accounts either directly or through the use of foreign legal entities.

On November 29th 2013, the Central Bank of Lebanon requests by its notification 897 all financial institutions operating in Lebanon to comply with FATCA provisions act to prevent financial and banking sectors from any risk.

On April 22th 2014, Saradar Bank has signed the FFI Agreement and thus enrolled to the FATCA classification as a Participating FFI. This entails that the Bank entered into an agreement with the IRS, obtained a GIIN, assigned a Responsible Officer (RO) to establish a compliance program that includes policies, procedures and process sufficient steps to comply with FATCA rules, committed to identify US accounts, disclose the requested information to the IRS.

In this context, Saradar Bank's Global Intermediary Identification Number (GIIN) is QBGCMS.99999.SL.422 FATCA requires to report yearly certain type of information related to its US customers to the IRS through the International Data Exchange Service (IDES).

This information consists of: full name, address, Tax Identification number (“TIN”), account number, balance or value, the total gross amount of interest and dividends as well as the total gross proceeds from the sale or redemption of financial assets paid or credited to the account.

If the customer refuses to waive the banking secrecy toward IRS or to provide requested information and documents, or in case of contradiction or confusion in the documents submitted, to classify the client as defined by FATCA “Recalcitrant Account”, and to terminate the relationship and to close the account with a reasonable period of time.

Should you have any questions about the contents of this letter, please refer to the U.S. IRS department or to your tax advisor for more information and explanations.