US FATCA Directive is relaxing its strict validation requirements

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The IRS in the US (the Internal Revenue Service) has announced that the regulation requiring that a beneficial owner withholding certificate is submitted with personal information will be temporarily relaxed. The rule states that under the FATCA (Foreign Account Tax Compliance Act) all Beneficial Owner documentation must also contain a foreign taxpayer ID number and the individual beneficial owner’s date of birth. For the financial year 2017, all foreign financial institutions and service providers do not need to provide the taxpayer ID number unless they already have the details recorded, and they can therefore obtain the date of birth from their own files rather than adding an additional step and having the owner confirm it. The beneficial owner also has the option to self-certify the information via email.