Swiss Bankers Association Comments on FATCA

With the implementation of FATCA looming and the date approaching in January 2014, all eyes are on the banks to see how they will comply.  The Swiss Bankers Association has listed elements that might be of particular interest. Financial intermediaries in Switzerland will get facilitation in the identification of clients with ties to the US. Any US clients who don’t transfer their data will be reported by name to the US. Only banks with a client base of more than 98% from Switzerland and the EU will automatically be considered FATCA compliant.

Lawyer Marnin Michaels based in Zurich assured people that, under FATCA, he believes US taxpayers residing in Switzerland will be part of the required 98% considered local.

Laut dem Zürcher Anwalt Marnin Michaels von der Kanzlei Baker & McKenzie zählen gemäss Fatca US-Steuerzahler mit Wohnsitz in der Schweiz zu den erforderlichen 98 Prozent Lokalkundschaft.

Others are not as sure. Lawyer Bill Sharp is worried that for Swiss local and regional banks that want to fit into the category 4 of the program “there is a dilemma.” (Für Schweizer Lokal- und Regionalbanken, die sich in die Kategorie 4 des Programms einordnen möchten, «ergibt sich ein Dilemma», erläutert Sharp in einem noch unveröffentlichten Artikel für die Fachzeitschrift.)

The SBA has definitely made its opinion of the upcoming changes known, stating, “The banks nevertheless continue to view Fatca critically due to the costs it incurs and the administrative burden it creates. Were they, however, to refuse to implement Fatca, they would face competitive disadvantages internationally that would jeopardise their survival.”

 

 

 

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