Kenyans Based in USA Required To Provide SSN Details Before Opening Bank Ac in Kenya

If you are in America and operates a bank account in Kenya, you may have been asked by your bank to provide a copy of your W-9.  We all know the one critical information contained in a W-9: Social Security Number (SSN)!Knowing too well how unscrupulous cartels (can) infiltrate almost every institution in Kenya, including banks, one is likely to develop cold feet when asked to provide his or her SSN no matter how encrypted the format is. There is no escaping this, however banks face more stringent rules premised on the Foreign Account Tax Compliance Act (“FATCA”).Under FATCA, foreign banks are required to report account information owned by U.S. persons to the IRS. Having provided the SSN to the Kenyan bank(s), IRS computers will receive your account information and match the foreign bank account information with your U.S. tax return. In essence for IRS, identifying delinquent taxpayers will be an automated process. While there is no no legal requirement to complete the W-9, your bank will probably close your account if you do not comply.You may also note that U.S. citizens, permanent residents and legal entities with an interest or signature authority over foreign financial accounts that have an aggregate balance exceeding $10,000 are required to file the FBAR (Foreign Bank Account Report). Foreign financial accounts include: banks accounts, brokerage accounts, mutual funds, annuities, life insurance policies with cash value, and indirect interests in foreign financial assets through an entity (if >50% ownership).The $10,000 threshold is met if the aggregate balance (combining all the accounts) exceeds $10,000 at any point during the year. The FBAR is a separate from your income tax filing, and the due date is June 30th of each year (with no extensions). Account balances need to be converted to U.S. dollars, using the Foreign Exchange rate as of the last day of the year. Failure to report (non-willful) carries a penalty up to $10,000. Willful non-compliance potentially raises the penalty up to $100,000 or 50% of the taxpayer’s foreign assets (whichever is greater). If you have a joint account say in Kenya with a non-US person, that joint account, as long as it has one US owner is treated as a US account and therefore the entire account is subject to the FATCA legislation.