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.
Credit unions wish Fatca ‘did not exist’
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(IGAs) intended to enforce it at a government-to-government level mean that credit unions are hoping that Fatca will be repealed, Edwards says.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.”
The banks can easily lie to their customers about the costs of Fatca.This is where the banks and credit unions differ. Credit unions are “honest” with their customers as they are “owners” and shareholders of the company. I have no idea how they will break the news to their customers/owners about the fact that they will lose money and the Credit unions profits will go negative if Fatca is unleashed. The best option for the whole world is to finally stand up to this and fight. The 30% the US feels they can take, will be tried in international courts. I am sure they will lose as this is illegal. The next step is to dump the US and work with other countries to build another currency and let the rest of the world profit as the US goes down the drain.
Listen to this man, don’t be terrorized by Obama Amin
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