FATCA (Foreign Account Tax Compliance Act) is a law passed by United States of America (US) to prevent US persons from using banks and other financial institutions outside the US for investment purpose in order to avoid US taxation on the income earned / generated from such foreign investments /wealth.
FATCA obliges such foreign (for US) banks and financial institutions (also Mutual Fund – Quantum MF) to report information about US persons having accounts with them. It is a financial reporting of assets owned by “United States Persons” to the “United States Tax Authorities”.
The data collected of U.S. Reportable Account will be reported to US Internal Revenue Service (IRS) or the Indian Tax Authorities for onwards submission to IRS. We would like to inform you that as per the FATCA, Quantum Mutual Fund is required to undertake due diligence process of all the investors including Indian Residents residing in India and Non Resident Indian (NRI) residing in USA or any other country to identify US Reportable Account.