On 12 July 2013, the Internal Revenue Service (IRS) and the Treasury Department delayed certain provisions. While the announcement of a further delay was met with relief, it has also sent mixed signals to the financial services industry about how ready they should be with their FATCA compliance program by July 2014.
On 22 October 2013, they released a notice giving Foreign Financial institutions (FFIs) further guidance to implement their FATCA compliance program.
The notice highlights details of the negotiated bilateral agreements, adds new rules and it includes a draft agreement for institutions to sign if they want to avoid penalties. While this notice serves as a next step in implementing a FATCA compliance program, it is only relevant to those institutions operating in model 2 Intergovernmental Agreements (IGA’s) jurisdictions. Institutions not operating in Model 1 or Model 2 jurisdictions will need to comply with the final regulations released in January 2013.
Our white paper ‘The delay to FATCA’s roll out’ is a global examination of how the financial services industry is preparing for FATCA compliance, how well they understand the FATCA legislation and the impact it will have on the organization’s operations.
Thomson Reuters for FATCA supports:
- Classification, Identification of accounts
- Ongoing FATCA compliance program
- Integrates with existing processes
- Configurable Regulatory and management reporting
- Few institutions are prepared for FATCA despite delays, report says
- More financial institutions outsource compliance work as regulatory pressure increases
- U.S. Treasury gives more detail on FATCA offshore anti-tax evasion law
- Hong Kong securities regulator warns on FATCA compliance
- Shutdown slows U.S. bilateral FATCA talks to fight offshore tax dodgers
- “Responsible officers” must eye global tax compliance as lobby group calls for FATCA harmonisation
- How to navigate the new FATCA web portal
- FATCA and IGAs — the nuts and bolts for compliance practitioners
- New online FATCA registry will aid foreign financial institutions’ compliance efforts, say industry officials