n NISM Certifications
V-A NISM Series V-A
Medium

On whom is the compliance requirement under the Foreign Account Tax Compliance Act (FATCA) applicable?

Practice question from Nism VA Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Only on those mutual funds who have foreign institutions as their sponsors

  2. B

    Only on those mutual funds who are registered with a foreign agency

  3. All financial institutions including mutual funds

    Correct answer

  4. D

    Only Indian mutual funds

Why this is the answer

FATCA compliance applies to all financial institutions, including mutual funds, to report foreign accounts as part of international efforts to combat tax evasion.

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