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Technical aspects


The U.S. Treasury Department and the Internal Revenue Service (IRS) have released proposed regulations on FATCA.

FATCA, which became law in 2010, requires foreign financial institutions to provide detailed information about U.S. account holders to the IRS. The law is effective on January 1, 2013.

On February 8, 2012, the U.S. Treasury Department and the IRS released proposed regulations and the top financial services executives should likely consider the takeaways from these regulations.

FATCA technical aspects in detail

  • Due diligence procedure
    The proposed rules regarding classification and action on pre-existing accounts are a significant departure from the guidance contained in the prior notices and include changes that should reduce the affected customer population and streamline the remediation process.
  • Reporting requirements
    The proposed rules give FFIs additional time to make adjustments to their systems for reporting US income. These reporting requirements will be phased in gradually between 2014 and 2017.
  • Withholding requirements
    The proposed withholding requirements are scheduled to be gradually phased in over several years starting with US-sourced income payments beginning on 1 January 2014.
  • Affiliated group requirement
    These rules would add a transition period (until 1 January 2016) to the expanded affiliated group requirement to comply with FATCA if certain branches or entities within the group are unable to fully comply with FATCA (e.g., limited branches and limited FFIs).
  • The “FATCA five”
    The US has signed an agreement with five European governments to help combat tax evasion. France, Germany, Italy, Spain, and the United Kingdom said they would jointly develop a framework to collect and send information about offshore accounts held by Americans from their banks to the IRS.


  • Pascal Eber
    Partner - Operations Excellence & Infrastructure Operations
  • Pascal Rapallino
    Partner - Private Wealth Services Leader
  • Pascal Noël
    Partner - Tax - International Tax-GFSI
  • Basil Sommerfeld
    Partner - Operations & Human Capital Leader
  • Alain Verberken
    Directeur - Tax - International Tax-GFSI



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