Following the submission of FATCA reports by financial institutions in August of this year, the Mexican Tax Authorities (Servicio de Administración Tributaria or SAT) have now begun reviewing the compliance of financial institutions to ensure that financial information on U.S. individuals, U.S. entities or other reportable U.S. accounts has been correctly and accurately reported.
We expect the number of FATCA reviews and FATCA audits carried out by SAT to increase in the coming months. Such reviews are expected to including:
- Onboarding processes for new clients;
- Due diligence and data management for existing clients;
- Annual FATCA reporting