The Department of Treasury issues a number of surveys to collect data on cross-border investment activity. US businesses should review the reporting requirements and seek appropriate guidance.
The Treasury International Capital ("TIC") System is a data collection arm of the US Department of the Treasury ("DoT"). This reporting system is a set of periodic statistical surveys designed by the DoT to document the flow of money into and out of the US through purchases and sales of securities and other financial instruments.
The DoT issues a number of monthly, quarterly and benchmark surveys that are used to collect data on cross-border investment activity. The TIC reports allow the DoT to receive timely and reliable information on the levels and changes in US international portfolio capital positions for the preparation of the official US Balance of Payments and for statistical reporting. These surveys include:
- TIC BL-2 - A monthly report of dollar-denominated liabilities to foreigners.
- TIC S - A monthly report detailing transactions in long-term marketable securities undertaken directly with foreigners by banks, other depository institutions, brokers, dealers, underwriting groups, funds and other individuals and institutions.
- TIC BQ-2 - A quarterly report of foreign currency-denominated liabilities to and claims of certain financial institutions and their customers' on foreigners.
- TIC SLT - A monthly report used to gather timely and reliable information from US-resident reporters on foreign-resident holdings of long-term US securities and on US-resident holdings of long-term foreign securities. This information is needed for preparation of the US Balance of Payments accounts and the US international investment position, and in the formulation of US international financial and monetary policies.
- TIC SHC - An annual report to the Federal Reserve Bank of New York of US (acting as fiscal agent for the DoT) Ownership of Foreign Securities, including selected money market instruments.
- TIC SHL - An annual report that collects information on holdings by US residents of foreign securities, including equities, long-term debt securities, and short-term debt securities, including selected money market instruments.
US businesses, including investment managers, which are currently unfamiliar with the TIC surveys should review the reporting requirements and seek appropriate guidance to determine if and how they apply to them or to the funds they manage. Failure to satisfy TIC reporting requirements may lead to significant civil and criminal penalties, including monetary fines and, in some circumstances, imprisonment.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.