The FATCA Loophole will bring more Enforcement Action
After a yearlong investigation, the US Senate Finance Committee probed into a FATCA Loophole and delivered an investigative report titled “The Shell Bank Loophole” that exposes a tax evasion scheme under a FATCA loophole that allows banks offshore to accept funds from U.S. persons without reporting them to the IRS. Senate Finance Committee Chair Ron […]
FDIC Crypto Protection? No way!
On 7/29/22, the FDIC published a Crypto Advisory: “Advisory to FDIC-Insured Institutions Regarding Deposit Insurance and Dealings with Crypto Companies” due to its concern regarding the confusion that consumers have regarding Crypto assets “offered by, through, or in connection with insured depository institutions (insured banks)”. Crypto assets are not legal tender (not fiat currency) and […]
Can the IRS Collect Assets Abroad?
The answer to the question “Can the IRS Collect Assets Abroad”” is yes, based on the Office of Chief Counsel Internal Revenue Service memorandum dated February 24, 2022. The memorandum discusses the IRS Collection Procedures for Assets outside of the U.S. The IRS has several collection tools and the use of various information sources available […]
CDD Friendly Reminder from the Agencies to the Banks
On 7/6/22, the Agencies (Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Financial Crimes Enforcement Network, the National Credit Union Administration, and the Office of the Comptroller of the Currency) issued a joint statement to remind the banks of the risk-based approach to assessing customer relationships and conducting customer […]
FATCA coming to Digital Assets
The Biden’s Administration’s Fiscal Year 2023 Revenue Proposal includes “Modernize Rules” to address Digital Assets that will require reporting by certain Taxpayers of Foreign Digital Asset Accounts. Tax compliance and enforcement with respect to digital assets has become a growing problem for the US Government given that the digital asset industry is web based, and […]
Beware of FATCA Certifications Being Under OFAC Review
In a quiet news release delivered on 3/23/22, the IRS updated the FATCA FAQ’s (Q. 22) to inform FATCA Stakeholders that a registration status could be changed to under review with a message indicating “For more information contact the Treasury Department Office of Foreign Asset and Control (OFAC). OFAC Sanctions Compliance is now at the […]
“Reciprocal FATCA” Bill will be a Game Changer
Under the concept of “Reciprocal FATCA” financial institutions and brokers ought to start preparing to assume greater and expanded reporting responsibilities. As FATCA Stakeholders, financial institutions, and brokers, such as U.S. digital asset exchanges, need to get ready to share information on an automatic basis with the US Tax partner jurisdictions. The U.S. does not […]
TIGTA Report Sheds Light on the Future of FATCA Enforcement
The TIGTA Report dated April 7, 2022 details six recommendations for additional actions needed to address Non-Filing and Non-Reporting Compliance Under FATCA. The IRS agreed with five out of the six recommendations in the TIGTA Report which signal that FATCA enforcement will increase in terms of collection actions, compliance actions for under reporters, penalty assessments, […]
How will FinCEN Implement the Beneficial Ownership Information Reporting Provisions of the Corporate Transparency Act (CTA)? They want your input.
FinCEN has been busy in the quest to fight corruption as evidenced by back-to-back issuance of Notices of Proposed Rulemaking (NPRMs). On 12/6/21, they issued the (Regulatory Process for New Real Estate Sector Reporting Requirements to Curb Illicit Finance) and on 12/7/21, they issued the Proposed Rule for Beneficial Ownership Reporting to Counter Illicit Finance […]
Lawmakers Propose Crackdown on Money Laundering “Enablers”
Should lawmakers have to follow the same rules as financial institutions? For the first time, a bipartisan group of U.S. lawmakers has proposed legislation that would require trust companies, lawyers, accountants, notaries, real estate agents, dealers in precious metals and stones, art dealers, casinos and even public relations firms to investigate foreign clients seeking to […]
Questions FIs Should Ask External FATCA and CRS Service Providers
OECD Guide Offers Financial Institutions Advice on FATCA and CRS Hiring External Service Organizations to Handle Compliance While financial institutions (FIs) have final responsibility for compliance with the Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS), many engage outside service providers. Advice on establishing agreements with the providers and on how to […]
How to Ensure FATCA and CRS Stakeholder Collaboration
OECD Report suggests compliance regime elements for FIs and Stakeholders Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS) stakeholders are key to financial institutions’ (FIs) successful implementation, compliance, and maintenance efforts. These activities require funding, monitoring and approval. A pilot group of tax administrations of Canada, Singapore, the United Kingdom and the […]
