FATCA IGA Scoreboard – Turkey, Turkmenistan and the Seychelles join the list

Less than two weeks remain before the far-reaching Foreign Account Tax Compliance Act becomes effective, and although the pace of adoption has slowed, the list of nations who have entered into intergovernmental agreements (IGAs) to implement the law continues to grow. Within the last 14 days, Turkey, Turkmenistan, and the Seychelles have all entered into IGAs with the US.

All three nations agreed “in substance” to Model 1 IGAs. As a offshore financial center sometimes labeled a “secrecy haven,” the Seychelles adoption of an IGA is notable.

Last week, the Internal Revenue Service released its first list of non-US institutions that have registered to comply with FATCA and received “Global Intermediary Identification Numbers (GIINs).” The list is the best indicator to date of how FATCA compliance is progressing at financial institutions around the world. 38 institutions from the Seychelles were included on the list, as were 66 institutions from Turkey. Turkmenistan had only one institution register. Overall, 70% of financial institutions that registered were located in a country with a Model 1 IGA.

In total, more than 70 nations have now enlisted as partners in implementing FATCA. 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 US 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

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.