US Foreign Account Tax Compliance Act (FATCA)
The United States Foreign Account Tax Compliance Act (FATCA) was enacted in 2010 as part of the US Hiring Incentives to Restore Employment Act (HIRE) and is effective from 1 July 2014. The law is enforced by the US tax authority, the Internal Revenue Service (IRS).
The purpose of FATCA is to improve the tax compliance of US taxpayers who have foreign financial assets and offshore accounts. FATCA requires financial institutions to report on information about their US customers, which information will be passed to the IRS.
Under the provisions of FATCA, brokers, producers, agents and/or insurance customers making payments to insurance or reinsurance entities or other intermediaries may need to obtain withholding certificates (IRS Forms W-8 or W-9) to confirm the recipient’s compliance with the FATCA regulations. Typically, Form W-8BEN-E is provided by non-US entities and Form W-9 is provided by US entities.
Please consult your tax adviser for further information on FATCA.
Information on FATCA can also be obtained from the IRS at:
Liberty Specialty Markets and FATCA
The Liberty Mutual Insurance Group, and specifically the companies within the Liberty Specialty Markets subgroup, is FATCA compliant.
Liberty Specialty Markets is the trading name for the combined operations of Liberty Mutual Insurance Europe SE, Liberty Managing Agency Limited (for and on behalf of Syndicate 4472 at Lloyd’s), and Liberty Mutual Reinsurance.
Questions regarding Liberty Specialty Markets’ FATCA compliance, including requests for IRS Forms W-8 or W-9, should be sent to FATCA@LibertyGlobalGroup.com.
a) Policies underwritten by Liberty Mutual Insurance Europe SE (under the Liberty International Underwriters Europe and Liberty Mutual Insurance brands)
For confirmation of FATCA compliance in respect of premium payments to Liberty Mutual Insurance Europe SE, please request this company’s W-8BEN-E from FATCA@LibertyGlobalGroup.com.
b) Policies underwritten by Liberty Managing Agency Limited for and on behalf of Liberty Syndicate 4472 at Lloyd’s
Lloyd’s has agreed with the IRS that a single W-8IMY will be sufficient for FATCA purposes to cover insurance and reinsurance premiums paid to Lloyd’s syndicates (including payments to Liberty Syndicate 4472).
The Lloyd’s W-8IMY and further details can be found at the dedicated FATCA section of www.lloyds.com:
c) Policies underwritten by coverholders on behalf of Liberty Managing Agency Limited for and on behalf of Liberty Syndicate 4472 at Lloyd’s
The Lloyd’s W-8IMY does not cover premium received by coverholders or Lloyd’s service companies, such as Liberty Syndicate Services Limited.
For confirmation of FATCA compliance in respect of premium payments to Liberty Syndicate Services Limited, please request this company’s W-8IMY from FATCA@LibertyGlobalGroup.com.
d) Policies written by Liberty Specialty Markets Agency Limited and Liberty Specialty Markets Bermuda Limited
Please note the tax status of Liberty Specialty Markets Bermuda (formerly Ironshore Insurance Ltd) has changed. This may impact the FET liability on certain insurance or reinsurance arrangements where premiums are paid on an instalment or multi-period basis. In these nstances, the liability for tax shall attach at the time the premium payment is transferred to the foreign insurer or reinsurer. Since Liberty Specialty Markets Bermuda ceased to be a foreign reinsurer for US tax purposes with effect from May 2, 2017, premiums transferred from May 2, 2017 are not subject to FET. Separately, evidence of compliance by Liberty Specialty Markets Agency Limited and Liberty Specialty Markets Bermuda Limited with FATCA regulations can be found below.
Please see documents below:
FATCA Liberty Specialty Markets Agency Limited 2018
Liberty Specialty Markets Bermuda Limited
LSM Bermuda Ironshore 953 (d) memo