FATCA `Versus’ IGAs

A Foreign Account Tax Compliance Act issue that has recently bubbled up relates to the differing approach to FATCA compliance by the U.S. Treasury Department and the governments of some countries, notably, the U.K. and Canada, with respect to the self-certification requirements for new individual account openings under an intergovernmental agreement (IGA).

Both sides appear to make good arguments for their respective positions but, until resolution of the issue is obtained, foreign financial institutions (who are in the middle) will suffer.

Annex I of the IGA between the U.K. and the U.S. sets forth the due diligence obligations of U.K. ...