New
Requirements from 1st Nov.2015 for MF investing
Proactive
steps by CAMS sees over 1 lakh investors update the declaration / information
in the first 3 days
Background
India has joined MCAA on Automatic Exchange of Financial Account
Information on 3rd June 2015. In terms of the MCAA, all countries which
are a signatory to MCAA, are obliged to exchange a wide range of financial
information.
Additionally, Governments of India and USA have signed an agreement to
improve international tax compliance and to implement the FATCA in India.
Further, for combating the problem of offshore tax evasion, avoidance
and stashing of unaccounted money abroad, it requires cooperation amongst tax
authorities. Hence, the G20 and OECD countries worked together and have
developed a Common Reporting Standard (CRS) on Automatic Exchange of
Information (AEOI).
As per
above agreements and towards compliance with tax information sharing laws, such
as FATCA/CRS, financial institutions of the “source” jurisdiction are required
to collect and report information to their tax authorities about account
holders “resident” in other countries, such information having to be
transmitted “automatically’ on yearly basis. The information to be exchanged
relates not only to individuals but also to shell companies and trusts having
beneficial ownership or interest in the “resident” countries.
This also
mandates all financial intermediaries to seek additional personal, tax and
beneficial owner information and certain certifications and documentation from
account holders. They are also obliged to share information of your account with
relevant tax authorities and other competent authorities.
Vide SEBI
Circular CIR/MIRSD/2/2013 dated 24th January 2013, SEBI has issued guidelines
on identification of Beneficial Ownership and mandated all Intermediaries to
identify and verify such beneficiary owners.
Vide AMFI
Circular dated 18th September 2015, following information has been made
mandatory with effect from November 1, 2015
for new investors to the respective Fund / from January 1, 2016 for the existing
investors
What does an investor need to do to comply ?
The following
information is mandated as part of the above requirements.
All investors [both
Individuals and Entities] are required to fill-up this additional information
in the relevant Declaration form that contains FATCA-CRS Declaration, Supplementary
KYC Information and UBO Declaration and submit to CAMS/CAMS serviced Mutual
Fund AMC branches.
* Additional
KYC Information
* Ultimate
Beneficiary Ownership [UBO] declaration from Non-Individuals
Accordingly, following information is mandated as
part of the above requirements:
* Country of Birth/Incorporation
* Place of Birth/Incorporation
* Address Type [Residential or Business, Residential,
Business, Registered Office] for the KYC registered address
* Occupation
* Applicant Income Slab details
* Net Worth details
* Information about PEP [Politically Exposed Person
& its relatives]
* Information on specific Corporate services
[applicable for Non-Individuals]
* Information about Ultimate Beneficiary Owner(s)/Controlling
Person(s) [applicable for select category of Non-Individuals]
* If your [investor] tax residency is other than India, then following
information for all countries in which you are resident for tax purposes is
required:
* Country of Tax Residency [also include USA, where the individual is a citizen/green
card holder of the USA]
* Tax Identification Number [If not available, kindly provide its functional
equivalent]
* Identification Type [TIN or
Other, to be specified)]
How is CAMS facilitating
investors to comply
with the new
requirements ?
As a
service partner to 17 Mutual Funds, CAMS has developed multiple options for
investors to submit their declarations / information.
CAMS has
enabled online updation facility in www.camsonlone.com. Updation
is allowed after due authentication, including a One Time PIN. CAMS is the only
Registrar to have enabled the online updation facility.
CAMS has
created a central database for the updated PANs, with
concurrence of all its Serviced AMCs,
thus enabling one time submission of Forms. This immensely benefits the investor as he /she does not have to repeat
the process while investing into a new fund, thus making investing into Mutual
funds a hassle free experience.
Large
distributors have been provided standardized format to electronically submit
the updation.
This
concerted effort has resulted in CAMS receiving over 100,000 investors in the
first 3 days.
CAMS also
propose to provide updates on complied investors to the Distributor community
through mail back and web servicing modes, to avoid duplication of efforts.
For more
details, please write to camsfatcaubo@camsonline.com or call our toll-free support number 1800-200-2267
and 1800-419-2267 from anywhere in India.
For Media Contact
Nagaraj Perumal
Ketchum Sampark
Office : (d)+91 44 2435 2644
Mobile: +91 99406 37801
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