Request to Customers Concerning the Foreign Account Tax Compliance Act (the “FATCA”)

The Foreign Account Tax Compliance Act (the "FATCA") was enacted in March 2010 in the United States (U.S.). The Act is designed to prevent tax evasion by U.S. taxpayers using their accounts at financial institutions overseas (i.e., countries other than the U.S.). FATCA Final Regulations and the joint statement by the U.S. and Japan have indicated procedures to be implemented by financial institutions in Japan. Shinsei Bank therefore will introduce new procedures under the FATCA from July 1, 2014.

When Shinsei Bank customers fall into U.S. citizens under the FATCA (i.e., U.S. taxpayers) described below, the Bank will periodically provide the Internal Revenue Service (the “IRS”) with the customers' name, address, account number, taxpayer identification number, account balance, interest earned and other details. The Bank will therefore ask its customers who are subject to the provision to present documents designated by the Bank including a consent to the information disclosure.

U.S. citizens under the FATCA who are subject to reporting

"U.S. citizens" under the FATCA refer to U.S. citizens under the U.S. taxation laws. They are not limited to those who have U.S. citizenship but include those who have permanent residency in the U.S. (Green Card holders) and U.S. residents.

  • (1)U.S. citizens (those who have U.S. citizenship)
  • (2)U.S. permanent residents (Green Card holders)
  • (3)Those who are classified as U.S. residents (including expatriates) under U.S. laws (in general those who satisfy the following conditions concerning the length of their stay in the U.S. are deemed to be U.S, residents for taxation purpose in the U.S.: The number of days of stay in the U.S. this year equals or exceeds 31 days and the total of a. the number of days of stay in the U.S. this year, b. one-third of the number of days of stay in the U.S. in the previous year, and c. one-sixth of the number of days of stay in the U.S. in the year before the previous year equals or exceeds 183 days.

Please note that Shinsei Bank's PowerFlex accounts are only available to customers who live in Japan (residents) pursuant to Article 1, Paragraph (2) of "Common Customer Agreement on PowerFlex Transaction".*

  • * Article 1, Paragraph (2) of "Common Customer Agreement on PowerFlex Transaction":
    This transaction will only be provided for individual customers who are resident in Japan.

Details of Our Request to Customers

When customers are opening an account at Shinsei Bank, the Bank may ask questions concerning the FATCA and request submission of necessary documents (in formats designated by the Bank), including a letter of consent on reporting to the IRS to check if customers are U.S. taxpayers.

  • (1) Customers applying for opening a new accounts

From July 1, 2014, when customers falling under U.S. citizens under the FATCA (1), who are subject to the aforementioned reporting, apply for opening an account, they must submit "Request for Taxpayer Identification Number and Certification (W-9) <in a format prescribed by Shinsei Bank>." When customers falling under U.S. citizens under the FATCA (2) and (3), who are subject to the aforementioned reporting, apply for opening an account, they must submit "Request for Taxpayer Identification Number and Certification (W-9) <in a format prescribed by Shinsei Bank> or W-8BEN." Shinsei Bank will not open an account without the submission of these documents.

If customer identification documents submitted by a customer include information that suggests that the said customer may be a U.S. citizen (e.g., information that the customer's birthplace is in the U.S.), the customer must submit the stipulated document (W-9 <in a format prescribed by Shinsei Bank> or W-8BEN)because the customer may have an obligation to pay tax in the U.S. regardless of his/her current place of residence. Shinsei Bank will not open an account if the customer has not responded to the Bank's confirmation .

  • * Please note that those wishing to take out Shinsei PowerSmart Home Mortgage too need to open a Shinsei PowerFlex account.
  • (2) Customers who already have a Shinsei PowerFlex account

When information held by Shinsei Bank regarding a customer who has already opened an account at the Bank contains information that suggests that the customer may be a U.S. citizen and when the Bank has obtained information that suggests that the customer may be a U.S. citizen, the Bank may check if the customer falls under a U.S. citizen. Japanese tax authorities may provide account information and other information to the IRS if the customer does not respond to the confirmation procedures.

  • * Please make sure to consult with a lawyer, tax accountant and other relevant specialists if you have questions about taxation treatment concerning the FATCA.
  • * Please select either of the following methods if you also wish to change your address:
    Please check here for changing your address online.
  • Shinsei Bank's handling of personal information

Shinsei Bank will use personal information (e.g., taxpayer identification number) obtained from our customers under the FATCA only for the purpose of the FATCA. The Bank may provide customers' personal information if they have signed and submitted “Consent to Information Disclosure” W-9 (FATCA) Alternative Format (Registration No. 8477) to the Bank. U.S. personal information protection system is provided in the table below. The IRS will use the personal information provided by the Bank (i.e., account information requested under the Internal Revenue Act, Ministry of Finance rules, intergovernmental agreement and other rules) for assessment and collection of tax. The IRS has implemented all measures responding to Eight OECD Privacy Principles.

U.S. personal information protection system Systems related to personal information protection
  • Has no comprehensive laws or regulations but has the Electronic Communications Privacy Act (ECPA) and Health Insurance Portability and Accountability Act (HIPAA) as rules adopted by the public sector
Benchmark information related to the personal information protection system
  • Has joined the APEC's CBPR system
  • EU Adequacy Decision has no been made for the U.S.
Obligation of business operators or rights of individuals responding to Eight OECD Privacy Principles
  1. Collection Limitation: Partially stipulated by the HIPAA
  2. Data Quality: No relevant rules
  3. Purpose Specification: No relevant rules
  4. Use Limitation: Partially stipulated by the ECPA and the HIPAA
  5. Security Safeguards: Partially stipulated by the HIPAA
  6. Openness: No relevant rules
  7. Individual Participation: Partially stipulated by the HIPAA
  8. Accountability: No relevant rules
Other systems that affect rights and interests of individuals significantly
  • None

This transaction is available for individual customers living in Japan.

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