WASHINGTON, June 2 About 77,000 foreign and U.S.
banks and financial institutions, including some in Russia, have
registered with the United States to comply with a new law meant
to fight tax dodging by Americans, the U.S. Treasury Department
said on Monday.
Deputy Assistant Secretary for International Tax Affairs
Robert Stack said in a statement that the high level of
registrations so far showed "strong international support" for
the law, set to take effect on July 1.
The Foreign Account Tax Compliance Act (FATCA) will require
foreign banks, investment funds and other institutions to tell
the U.S. government about Americans' accounts that are worth
more than $50,000.
Hundreds of institutions in Russia signed up to comply with
FATCA despite frosty relations between Washington and Moscow.
The law was written after a scandal involving Americans
dodging U.S. taxes through secret bank accounts in Switzerland.
In addition to sign-ups by individual banks, nearly 70
countries have negotiated FATCA pacts with Treasury that allow
their firms to comply with FATCA and home-country privacy laws.
Treasury officials broke off FATCA pact negotiations with
Russia earlier this year as the crisis in Ukraine heated up.
Hundreds of firms in countries that have such FATCA pacts
registered individually anyway, out of an abundance of caution,
a Treasury spokeswoman said.
Foreign firms that do not comply with FATCA face a 30
percent withholding tax on their U.S. investment income and
could effectively be frozen out of U.S. capital markets.
More than 500 U.S. businesses also registered, including
Citibank NA, JPMorgan Chase & Co, various hedge
funds and exchange company CME Group Inc.
Publication of the registration list was a key step in the
long process of implementing FATCA because it lets firms see who
is and is not signed up. The list will be updated monthly as
more firms register, said the U.S. Internal Revenue Service.
Link to list: here.
(Reporting by Patrick Temple-West; Editing by Kevin Drawbaugh)