FATCA Responsible Officer (RO) Checklist – Updated for 2025
Under the United States (US) Foreign Account Tax Compliance Act (FATCA), Foreign Financial Institutions (FFIs) must designate a Responsible Officer (RO) to oversee the institution’s FATCA compliance framework and fulfill obligations under the FFI Agreement with the US Internal Revenue Service (IRS).
The RO plays a critical governance role: ensuring the FFI complies with FATCA regulations, maintaining accurate reporting and documentation, and certifying compliance to the IRS when required.
FATCA Reporting Models
Under FATCA, there are two main models for how FFIs report account information:
- Model 1 Intergovernmental Agreement (IGA):
FFIs report FATCA-related information to their local tax authority, which then automatically exchanges the information with the IRS. - Model 2 IGA:
FFIs report directly to the US IRS through the FATCA International Data Exchange Service (IDES).
While both types of FFIs register with the IRS and designate a Responsible Officer in the FATCA Registration System, only Participating FFIs and Reporting Model 2 FFIs are typically required to submit FATCA certifications (such as the Certification of Preexisting Accounts and Periodic Certification).
Reporting Model 1 FFIs generally have no IRS certification requirement, but must still appoint an RO in the registration system for correspondence and oversight purposes. With that in place, let’s dive deep into the checklist:
FATCA RO Checklist
By way of brief overview, a FATCA RO should ensure the following:
- FATCA Compliance Oversight
The RO (or equivalent) must hold sufficient authority and seniority within the FFI to oversee FATCA compliance effectively and to act as the principal point of accountability with the IRS.
- Knowledge and Professional Experience
While specific credentials are not mandated, the RO should have practical experience in FATCA operations, anti-money laundering (AML), know your client (KYC), tax, compliance, and technology.
This ensures informed oversight of complex cross-functional reporting processes.
- FATCA Registration
FFIs must complete registration through the FATCA Online Registration System (accessible via Login.gov or ID.me).
Form 8957 remains available in paper form, but online registration is the accepted and most efficient method.
The RO must ensure all entity details, Points of Contact (POCs), and classification information are accurate and current.
- FATCA Certifications
Where required, the RO is responsible for submitting two certifications via the FATCA portal:
- Certification of Preexisting Accounts (COPA) – confirming due diligence for preexisting accounts.
- Periodic Certification – confirming the FFI has effective internal controls for ongoing FATCA compliance.
The current deadline is July 1 following the third full calendar year after the FFI’s Global Intermediary Identification Number (GIIN) was issued, with recurring certifications on the same cycle thereafter.
- Maintain Current Information
Ensure the FFI’s information in the FATCA Registration System is up to date—especially RO and POC details, contact emails, and FATCA classification.
Any changes must be updated promptly to prevent communication lapses with the IRS.
- Documentation and Recordkeeping
Maintain a robust library of FATCA-related documentation to demonstrate compliance with the FFI Agreement and IGA requirements.
Records should include due diligence procedures, certifications, account classifications, and correspondence logs, and should be retained for the period prescribed by local law and FATCA guidance.
- Validation of Forms W-8
Implement a review process for Forms W-8 (e.g., W-8BEN, W-8BEN-E, W-8IMY, etc.) to ensure accuracy and completeness.
Errors, omissions, or duplications can invalidate the forms and lead to withholding or reporting errors.
- Periodic Compliance Reviews
Conduct regular reviews of the FATCA compliance framework to confirm its ongoing sufficiency and accuracy.
This includes validating due diligence procedures, sample testing of account classifications, and ensuring certifications accurately reflect the FFI’s status.
- Integration with Existing Compliance Systems
Align FATCA compliance with existing AML/KYC, customer onboarding, and risk management systems to leverage existing due diligence data and avoid duplication of controls.
- Staying Updated
The RO must stay informed on FATCA and IRS updates, including revisions to guidance notes, schema updates, and IGA amendments.
IRS frequently publishes updates on the FATCA portal and through the IDES communications.
- Verification and External Review
The RO must verify the FFI’s adherence to the FFI Agreement.
Where necessary, the RO may engage third-party consultants or external auditors to review procedures or assist with certifications, especially when requested by the IRS.
Key Definitions
Responsible Officer (RO):
An officer of a Participating FFI or Reporting Model 1 FFI within the entity’s Expanded Affiliated Group (EAG) who has sufficient authority to fulfill RO duties, including certifying FATCA compliance to the IRS.
FFI Agreement:
Includes a Qualified Intermediary (QI), Withholding Foreign Partnership (WFP), or Withholding Foreign Trust (WFT) agreement entered into with the IRS, effective on or after 31 December 2013.
Certification Deadlines:
RO certifications (COPA and Periodic) are due July 1 following the third full calendar year after the entity’s GIIN issuance, with recurring certifications thereafter.
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