A new article by Jessica Meek in Risk.net’s Operational Risk and Regulation examines how credit unions worldwide are being squeezed in the FATCA vise – whether they try to avoid it or not.
Fatca compliance burden stretching further
Credit unions will struggle to implement the US Foreign Account Tax Compliance Act (Fatca), warns Michael Edwards, vice-president and chief counsel at the World Council of Credit Unions (Woccu).
The regulatory burden associated with Fatca and the intergovernmental agreements (IGAs) intended to enforce it at a government-to-government level mean that credit unions are hoping that Fatca will be repealed, Edwards says.
“Credit unions around the world would prefer it if Fatca did not exist, mostly because of the regulatory burdens associated with complying,” he says. “Even on the US side, even though the Fatca statute never mentioned US banks or credit unions, in order to collect information to share with the foreign governments that are going to be signing or have signed IGAs to implement Fatca, US credit unions and banks are likely to be subject to the same reporting requirements as foreign ones.”