FATCA Regulations on Cross Border Financing - IPBA 2012

“Push Down” of Withholding Obligation‣ Participating FFIs that do not wish to act as withholding agents are permitted toeffectively "push down" the withholding obligation to an alternative agent suchas the FFIs bank or broker.• Participating FFIs will be permitted to elect to have withholding agentswithhold the 30% U.S. tax on withholdable payments or pass thru paymentsmade to the FFI that are attributable to accounts held by recalcitrant accountholders or non-participating FFIs.• Electing FFIs must provide information to withholding agents to enable themto withhold the appropriate amount and must provide withholding agentswith a waiver of the electing FFIs treaty rights.gsblaw.com 29