Change of model in sight for FATCA

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Le Temps, April 27, 2023

'Change of model in sight for FATCA'

 

Recent article from Le Temps in Switzerland (April 27th) discusses the agreement between Switzerland and the United States to move from Model 2 FATCA reporting to Model 1 wherein Swiss banks, via the Swiss Federal Administration, will report directly to the IRS. The article discusses whether this change in reporting will assist with the problems of banking lockout that many US citizens living and working overseas are facing. ACA was asked to comment on the change and was quoted as follows.

'The Executive Director of American Citizens Abroad, Marylouise Serrato, is sceptical about whether the new FATCA reporting agreement [between Switzerland the the United States will alleviate the problems of US citizens in Switzerland] saying, 'No matter whether it is Model 1 or 2 that is applied to the transfer of banking information, we don't see a big difference for US citizens living and working overseas. It is for this reason that we are proposing legislation and regulations that addresses the hesitation foreign banks have in accepting US clients.''