Revised models of FATCA IGAs
Closing the distance
On 4 November 2013 the US Treasury released revised versions of the Model 1A, Model 1B and Model 2 Intergovernmental Agreements (IGAs).
Deloitte has summarised the recent changes for your convenience.
For revised Model 1A and Model 1B IGAs, the key changes include:
- Extension of the definition of a Financial Account
- Revised definition of a Specified US person to exclude certain tax-exempt trusts
- Clarification that a FATCA Partner FI can continue to be in compliance even though it has related entities and branches that are Nonparticipating FIs due to the expiration of the 2 year transitional period for Limited FFIs and branches.
- Compulsory notification when a Competent Authority has detected administrative or other minor errors
For revised Model 2 IGAs, the key changes include:
- A similar revised definition of a Specified US person and a similar clarification in relation to group entities that are Nonparticipating
- An express requirement that the Reporting FIs must register with the IRS via the IRS FATCA registration website in order to be treated as compliant
- Updated verification and enforcement provisions
The revised Model Agreements can be found on the US Treasury website
How can we help?
Deloitte has a FATCA global centre of excellence aimed specifically at helping our clients analyse their responsibilities and risks to develop a tailored FATCA implementation plan.
Our professionals have a deep understanding of the tax, operational, technology and regulatory implications of FATCA. We can:
- Advise on your FATCA obligations
- Identify and categorise all entities within scope
- Develop a compliance framework to meet your requirements
- Conduct a data mining exercise to identify US persons and classify client base according to a risk-based approach
- Advise on enhancements to data structure, collection, calculation and reporting processes
- Develop policies, procedures, workflows, new reporting and monitoring controls
- Staff training
- FACTA PMO and programme execution