How can a financial institution or direct reporting NFFE register an entity located in a newly formed country or jurisdiction

To register an entity located in a newly formed country or jurisdiction, a financial institution (FI) or direct reporting nonfinancial foreign entity (NFFE) should follow the procedures outlined in the FATCA registration system. The FATCA registration system is regularly updated to include new countries and jurisdictions. If the newly formed country or jurisdiction is not listed in the system, the FI or direct reporting NFFE should select "other" for the country/jurisdiction. This ensures that the entity can still proceed with the registration process even if the specific country or jurisdiction is not yet explicitly listed in the system.

The registration process involves several steps, including providing the country/jurisdiction of residence for tax purposes, entering the tax ID (if applicable), and listing any branches maintained outside the country/jurisdiction of tax residence. The entity must also comply with FATCA obligations, which may include reporting substantial U.S. owners or confirming that there are none.

In summary, the key steps for registering an entity in a newly formed country or jurisdiction are:

1. Access the FATCA registration system.
2. Select "other" for the country/jurisdiction if it is not listed.
3. Provide the necessary information, such as the country/jurisdiction of residence for tax purposes and the tax ID.
4. Ensure compliance with FATCA obligations, including reporting requirements.

By following these steps, a financial institution or direct reporting NFFE can successfully register an entity in a newly formed country or jurisdiction.

Sources:
Publication 5118 (07/2021)
§ 1.1472-1. Withholding on NFFEs.
Instructions for Form 8957 (06/2018)
Publication 5262 (10/2022)
News Analysis: FATCA for Non-Banks: Group Finance Companies
Instructions for Form 8966 (2023)