FATCA – What may really happen on January 1, 2014?
12:00 - 2:00pm (first 15-20 minutes is for networking) Sandwiches and beverages provided
Hosted by the Financial Services Committee and Taxation Committee The U.S. Foreign Account Tax Compliance Act (FATCA) was enacted in March of 2010. It has been more than three years, and most financial institutions may not be ready by the go-live date of January 1, 2014.
Financial institutions waited almost two years to see proposed regulations. The U.S. Treasury promised a better approach to FATCA using government-to-government agreements when it released the proposed regulations. Those agreements became known as intergovernmental agreements (IGAs).
The promise was big, but in more than a year we have seen only a handful signed. It takes many months for countries to finalize and sign, or even just initial, IGAs.
Missing IGAs have become the latest but not the last reason for delay. Once an IGA is signed, the country signing with the U.S. must issue implementing rules. It has taken the U.K. more than six months to draft guidance. We should not expect guidance in most countries to be released in 2013.
What will happen on January 1, 2014, to financial institutions which cannot meet the requirements of FATCA on that date?
The American Chamber of Commerce in HK 1904 Bank of America Tower 12 Harcourt Road Central, Hong Kong