Treasury Extends FATCA Deadlines as Foreign Banks Await More Intergovernmental Agreements

By Colby Adams and Brian Monroe

Foreign banks are delaying overhauls to their IT systems and customer onboarding procedures made necessary by a U.S. tax law until their home governments conclude client data-sharing agreements with the United States, according to U.S. officials. On Friday, the Internal Revenue Service extended until June 2014 the cut-off date by which foreign banks choosing to not disclose their U.S. clients under the law, known as FATCA, would face a 30 percent withholding tax on certain payments they receive from the United States. Foreign banks choosing to comply outside of the framework of an Intergovernmental Agreement (IGA) now have until Aug....