CIAB creates portal for U.S. brokers dealing with foreign insurers
Weeks remain until the July 1 effective date of the Foreign Account Tax Compliance Act (FATCA), which will change the way foreign insurers do business with U.S. brokers.
To address those changes, the Council of Insurance Agents & Brokers (CIAB) is developing an online portal to house each foreign insurer’s W-8BEN-E forms allowing brokers access to needed forms.
“Our industry is facing a tight deadline with July 1 right around the corner, and we’re doing all we can to help educate and prepare brokers and foreign insurers alike for this massive change in process,” said Ken A. Crerar, president and CEO of CIAB, about the paid portal.
The CIAB is offering free trial periods for the portal.
The law will require brokers to document that every non-U.S. financial institution they do business with is FATCA-compliant or FATCA exempt. Demonstrating compliance will require a certificate to be collected and stored from every non-U.S. financial institution involved with a policy with even the slightest exposure to U.S. risk.
“FATCA has grabbed the attention of the world brokerage community, but a lot of confusion remains,” said Crerar.
Crerar added that CIAB will attempt to simplify the form exchange between U.S. brokers and foreign insurers by creating a clearinghouse for the IRS forms.
Currently, www.w8bene.com allows visitors to register for FATCA email updates, obtain news articles and download a CIAB webinar recording about the impact of the new law. A complete set of “Frequently Asked Questions” will be posted when the final instructions become available.
