Before your next SIP, check if your mutual fund KYC is FATCA ready

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When you invest in mutual funds, you complete KYC once and mostly forget about it. Later, a rule called FATCA was added. In simple terms, FATCA asks whether you have any tax connection outside India, especially with the US (for example, if you are a US citizen, green card holder or tax resident there). If this information is missing, fund houses are allowed to stop fresh investments, SIP registrations and sometimes even redemptions until you update the details. That is why many investors are suddenly getting emails and SMSes asking them to “update FATCA”.

You don’t have to visit every mutual fund website one by one. Most investors can check in a few minutes using the main registrar websites. The two key platforms that store your mutual fund records are CAMS and KFintech. Go to their FATCA/KYC sections and enter your PAN and date of birth. If your FATCA details are already there, you will usually see a message that you are compliant. If not, the site will ask you to fill a short online form. If you use apps or websites like myCAMS, MFCentral or your main fund house’s portal, you can also look in the “Profile”, “KYC” or “FATCA” section. Many dashboards clearly show whether your FATCA/KYC is complete or pending.

What information you will be asked for

The FATCA form is mostly about confirming whether you have any foreign tax link. In plain language, you will be asked:

 Are you only a tax resident of India?

 Do you hold a foreign passport (especially U.S.) or green card?

 Do you file tax returns in any country outside India?

You may also have to confirm your occupation, income slab and place of birth. Most of this is done online using OTP on your registered mobile number and email. If you are only an Indian resident with no foreign tax connection, you simply state that and submit.

Many people find out there is a problem only when a transaction fails. A new SIP may not start, or a purchase order on your usual app may get rejected with a line mentioning “FATCA/CRS not updated” or “KYC not FATCA compliant”.

 Receive emails or SMS alerts from fund houses saying “Please update FATCA declaration”.

 See a small warning on your MF app or platform asking you to complete FATCA.

If you started investing many years ago, before FATCA became standard, or if you have changed your mobile number, email or address since then, your chances of having an incomplete declaration are higher.

Once you fill in the online form and submit it, the update usually goes through in a few working days. After that, your mutual fund transactions should start working normally again. You normally don’t need to send physical forms unless the registrar or fund house specifically asks for it. Keep an eye on your email and SMS for a confirmation message that your FATCA status is updated.

It is a good idea to check your KYC and FATCA status once in a while, especially if you:

 Invest through multiple apps or platforms

 Have moved abroad or changed your contact details

 Are planning large redemptions or fresh investments soon

Using a common platform like MFCentral or myCAMS helps you see whether your details are consistent across different mutual funds. Spending five minutes now to confirm that your FATCA is in place can save you a lot of stress later, especially on days when you urgently need to invest or withdraw money.