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FATCA Agreement Ratified – Transfer of Personal Data under FATCA Agreement Still Questionable?

FATCA Agreement Ratified – Transfer of Personal Data under FATCA Agreement Still Questionable?

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The National Assembly of the Republic of Serbia has ratified the FATCA agreement executed earlier that year between the USA and Serbia at the end of 2019.

The agreement will enter into force as soon as Serbia notifies the USA that it finalized all required procedures for entering into the force of this agreement.

The agreement will serve as a legal basis for Serbian financial institutions to collect relevant information from its Clients and exchange of such information with US authorities. Prior to execution and entry into force of this agreement, there was no legal ground for transfer of such information to the United States and even collection thereof represented breach of the Serbian data protection legislation.

On the other side, it is still questionable whether FACTA Agreement provides for adequate safeguards for the transfer of personal data to the United States and serves as a valid legal ground for transfer of personal data to the United States as required by with new Serbian Law on Protection of Personal Data.

On the other hand, the fulfilment of the obligations undertaken by Serbia pursuant to this agreement shall result in treatment of relevant Serbian financial institutions as complied and shall not be subject to the section 1471 of the Internal Revenue Code of the USA nor to apply withholding tax pursuant to sections 1471 and 1472 of the said code.

You may address to JPM for the detailed information on the rights and obligations arising from the FACTA Agreement

By JPM Jankovic Popovic Mitic

JPM Jankovic Popovic Mitic at a Glance

JPM Jankovic Popovic Mitic is the leading law firm in Serbia, providing full service in Serbia and SEE region. Since 1991, we have been serving national and international clients from various industries in establishing, building and maintaining their business presence in Serbia and SEE. Our expertise, commitment, experience and the highest standard practice has been proven and recognized on the market. Our track record comprises numerous successfully completed landmark transactions in a developing and transitional economy. We are committed to finding solutions and providing flexibility of choice to our clients.

JPM is the founding member of Top-tier Legal Adriatic (TLA) a Vienna-based alliance of leading law firms operating in the Adriatic region. It is an association of independent business law firms with an excellent reputation obtained both locally and internationally, providing a full range of legal services to foreign and domestic clients hailing from various industries.

Firm's website: http://jpm.rs/

TLA website: http://toptierlegal.org/