FATCA IGA Scoreboard – Saudi Arabia, Taiwan and Thailand join the list

With four days left before FATCA’s start date, three more nations have consented to intergovernmental agreements to implement the far-reaching financial account reporting law.

Saudi Arabia and Thailand both entered into Model 1 intergovernmental agreements (IGAs), while Taiwan opted for a Model II IGA. All three are “in substance” agreements and have not yet been finalized. With relatively few Asian nations on the list of IGA partners, the addition of Thailand and Taiwan is notable, as is Saudi Arabia, one of the top 10 largest trading partners with the United States.

Over the past six months, the US Treasury has made major strides enlisting nations as FATCA partners, adding more than 40 since the start of 2014. In total, more than 70 nations have now enlisted as partners in implementing FATCA. Even so, that figure leaves almost 190 nations and jurisdictions recognized by the US that are not currently covered by an IGA.

The IRS released its first list of financial institutions who have registered and agreed to comply with FATCA earlier this month. More than 77,000 financial institutions were included on that list, of an estimated 200,000 – 400,000 financial institutions worldwide with FATCA compliance obligations.

The IRS has recently announced that 2014 and 2015 will serve as a “transitional period,” taking some of the immediate pressure off financial institutions as they implement compliance programs.

The list of FATCA partners expanded dramatically on April 2, when the US Treasury Department deemed 22 nations as having IGAs in effect because they had already negotiated “agreements in substance.” IGAs delineate the terms of FATCA compliance by partner nations and their financial institutions.

The ACFCS FATCA IGA Scoreboard continually updates the list of nations that have signed IGAs, entered into active negotiations with the US, or have shown little progress in reaching common ground with the US on FATCA implementation and compliance.

Nations with Model 1 IGAs with the United States

Nations with Model 2 IGAs with the United States

*Indicates jurisdictions with FATCA “agreements in substance” that the US Treasury Department will consider to be IGAs in force.

Next Likely FATCA IGA Signatory Nations

The following nations and jurisdictions are believed to be engaged actively in negotiations with the United States on a FATCA IGA.

  • Argentina
  • Malaysia
  • Thailand

FATCA IGA Status Unknown

The following nations and jurisdictions have either suspended talks on a FATCA IGA or are not believed to be close to the terms of an IGA.

  • Russia
  • China

Editor’s Note: Nations that sign FATCA “Intergovernmental Agreements” with the United States adopt Model I or Model II IGAs. Model I IGAs establish procedures for “Foreign Financial Institutions” (FFI) to report financial account information about US persons to the pertinent local authority, which transmits the information to the US IRS. Under Model II agreements, an FFI reports directly to the IRS.