Financial Compliance – FINCEN, FATCA
FINCEN, Aggressive Tax Reporting FATCA Withholding
FINCEN, Aggressive Tax Reporting FATCA Withholding under Title 31 USC creates a myriad of regulatory compliance obligations.
FinCEN is a bureau of the U.S. Department of the Treasury. The Director of FinCEN Secretary of the Treasury and reports to the Treasury Under Secretary for Terrorism and Financial Intelligence. FinCEN’s mission is to safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities.
FinCEN carries out its mission by receiving and maintaining financial transactions data; analyzing and disseminating that data for law enforcement purposes, and building global cooperation with counterpart organizations in other countries and with international bodies.
FinCEN exercises regulatory functions primarily under the Currency and Financial Transactions Reporting Act of 1970, as amended by Title III of the USA PATRIOT Act of 2001 and other legislation, which legislative framework is commonly referred to as the “Bank Secrecy Act” (BSA). The BSA is the nation’s first and most comprehensive Federal anti-money laundering and counter-terrorism financing (AML/CFT) statute. In brief, the BSA authorizes the Secretary of the Treasury to issue regulations requiring banks and other financial institutions to take a number of precautions against financial crime, including the establishment of AML programs and the filing of reports that to have a high degree of usefulness in criminal, tax, and regulatory investigations and proceedings, and certain intelligence and counter-terrorism matters. The Secretary of the Treasury has delegated to the Director of FinCEN the authority to start, administer, and enforce compliance with the BSA and associated regulations.
BSA eFile System
The BSA E-Filing System supports electronic filing of Bank Secrecy Act
(BSA) forms (either individually or in batches) through a FinCEN secure network. BSA E-Filing provides a faster, more convenient, more secure, and more cost-effective method for submitting BSA forms. Additional benefits are listed under Using BSA E-Filing.
How does BSA E-Filing work?
The BSA E-Filing System is hosted on a secure website accessible on the Internet. Organizations that file BSA forms with FinCEN can securely access the system after they apply for and receive a user ID and password from FinCEN.
This section addresses many of the more commonly asked questions regarding the use of the BSA E-Filing System. For additional information, contact the BSA E-Filing Help Desk via telephone at 1-866-346-9478 or e-mail at [email protected].
- Understanding What BSA E-Filing Is and What It Offers
- Understanding How BSA E-Filing Operates
- Connecting to BSA E-Filing
- Forms Reader
- General Filing
- Discrete BSA Filing
The Foreign Account Tax Compliance Act (FATCA), which was passed as part of the HIRE Act, generally requires that foreign financial Institutions and certain other non-financial foreign entities report on the foreign assets held by their U.S. account holders or be subject to withholding on eligible payments. The HIRE Act also contained legislation requiring U.S. persons to report, depending on the value, their foreign financial accounts and foreign assets.
FATCA for Individuals
- What does FATCA mean for U.S. taxpayers?
- Do I need to file the statement of foreign financial assets?
- What form do I need to report my foreign financial assets?
- Understanding Form 8938
- Comparison of Form 8938 and FBAR Requirements.
FATCA for Institutions
- What do foreign financial institutions need to know?
- What do U.S. financial institutions need to know?
- IDES resources and support information
- Understanding Form 8966
- Form 8966, FATCA Report – Form 8966 is used by foreign financial institutions to report investments made by, or on behalf of, U.S. citizens and residents.