Today the IRS announced an extension to the FATCA implementation
timings. Notice 2013-43, available online , pushes back a number
of key dates by 6 months including the registration deadlines,
commencement of withholding, the implementation of onboarding
changes and the registration deadlines. The Notice also provides
some practical guidance on the use of the registration portal and
treatment of entities in jurisdictions looking to enter an
We will be analysing the Notice in detail over the coming days,
however, initial highlights include:
Withholding does not commence until after 30 June 2014
FATCA compliant procedures must be in place by 1 July 2014
Preexisting accounts are those in existence as at 30 June 2014
and the due diligence requirements are moved back 6 months
The first reporting date remains in March 2015, however, this
is only with respect to the 2014 calendar year.
The FATCA registration website is projected to be accessible to
financial institutions on 19 August 2013.
The IRS will electronically post the first IRS FFI List by 2
June 2014, and will update the list on a monthly basis
To ensure inclusion in the June 2014 IRS FFI List, FFIs would
need to finalize their registration by 25 April 2014.
Clarification on the treatment of Financial Institutions
operating in jurisdictions that have signed an Intergovernmental
Agreement – a jurisdiction will be treated as having in
effect an IGA if the jurisdiction is listed on the Treasury website
as a jurisdiction that is treated as having an IGA in effect.
Treasury and the IRS intend to provide a list of jurisdictions
that will be treated as having in effect an IGA, even though that
IGA may not have entered into force as of 1 July 2014.
The Notice contains language indicating that the changes are
expected to apply in jurisdictions that have already signed IGAs
under the relevant most favoured nation articles.
These changes are likely to be welcome news for businesses
impacted by FATCA. We would be happy to discuss how the changes
affect your existing FATCA programmes and how they need to be
reflected in project timelines.
Tragheim Chris is a partner in the Financial Services Tax Group in
London. He specialises in information reporting and withholding and
is the global lead partner in respect of the U.S. Qualified
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
This alert reports a French case that relates to a hedge fund registered in the Cayman Islands, the investment agreement of which was governed by Cayman law, and where the actions complained about (withdrawing from the fund) were arguably strongly connected with the Cayman Islands.
Government and regulators to examine Co-op: Treasury has announced the Government, PRA and FCA intend to use their powers under the Financial Services Act 2012 to investigate activities at the Co-operative Bank.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”