“The proposed approaches across the globe simply won’t work. They won’t mesh. They won’t interact. They will cause conflicts,” Pearson said at the meeting. “Washington, we have a problem,” he said.
Business WeekPatrick Pearson, a European Commission official, warned that many of the US rules “won’t work”.
The Financial TimesEuropean hedge funds face arguably the worst – whether to break their local rules or those in the US. The way new OTC trading rules in each jurisdiction are written, it appears they will be subject to both, but will only be able to comply with one or the other… “If you put a European hedge fund in a situation where it has to choose between complying with US or European rules, it may avoid the swap transaction altogether because it will not want to risk being non-compliant,” says Wayne Pestone, chief regulatory officer at FXall in Washington, DC. “Putting hedge funds in this position just doesn’t make any sense.”
Risk.netThere is a lack of clarity on the various steps that need to be taken and the delays in implementation have led to further confusion. Imposing additional overseas (i.e., US) rules could be duplicative and also lead to jurisdictional conflicts. Non-US regulators may also be concerned about such an approach. Cost could be another important factor.
CPI FinancialThe US Foreign Account Tax Compliance Act (FATCA) has been described as “a kind of US backward imperialism”
GuardianFATCA Act could violate American banks… “there is concern about possible violations to the American legal orders (bank secrecy, taxation, consumer protection) with the implementation of the law”
Noticieros Televisa
This is only a bit of many recent news articles that I quickly put together in a few minutes. More stateside Americans seriously need to spend more time reading international media!
Ha! Why should they, they know where the centre of the universe is.
As far as the yanks are concerned, the raison d’etre of the terra incognita outside the borders of the US is only to hide money from the IRS.
Just ask Charlie Rangel (DEMOCRAT), who regained his safe seat in the House.
Some Brocker’s may note the the FATCA coverage that’s thus far been lacking in Mexico until now in Noticieros Televisa
Unfortunately I don’t read Spanish to know what the article covers, but I know that Mexico has been trying to get the US to share its citizens account information for some time. As the US being Mexico’s premier haven for Mexican drug money, FATCA reciprocity with Mexico won’t fly too easily with USFI’s I would guess.
@bubblebustin, Thanks for the link to the article. It only mentions the concerns of Latin American banks, not of immigrants in the US with bank accounts in their countries of origin, nor of US citizens living in Latin America.
I manually translated the article below, but in the future you can also try Google Translate, it works pretty well for most European languages.
@shadowraider
I have to give Swisspinoy credit for that link. The article is early FATCA learning curve stuff. Thanks for the translation info!