U.S., Switzerland Sign Intergovernmental Pact To Share Financial Information Under FATCA

The United States and Switzerland have signed a much-anticipated bilateral agreement to implement the Foreign Account Tax Compliance Act (FATCA), the U.S. Treasury Department announced Feb. 14.

The pact is intended to facilitate information reporting and withholding tax provisions under the 2010 law, which targets cross-border tax evasion. The statute requires financial institutions to report U.S.-owned accounts to the Internal Revenue Service. If banks do not comply, a 30 percent withholding tax could apply to payments a foreign financial institution receives on U.S. investments.

The Swiss accord is the latest the United States has signed centering around the exchange of ...