Search
 
Best Practices

FATCA for Multinationals: What Treasurers Need to Know

Corporate treasurers should be analyzing which of their entities, transactions, and banking relationships fall under the scope of the law. They may be surprised.

By Rebecca E. Lee | Updated on July 02, 2013
The Foreign Account Tax Compliance Act (FATCA) is a new set of U.S. tax rules that will affect many aspects of the day-to-day activities of the corporate treasury function. FATCA was enacted by Congress in 2010 to detect and deter tax evasion by U.S. citizens and businesses hiding money in foreign countries.

The legislation, which has a general effective date of January 1, 2014, is creating a new tax information reporting and withholding regime through which foreign financial institutions (FFIs) are expected to identify their U.S. account holders and report their account balances and other information.

For corporations with operations, activities, business partners, or counterparties outside of the United States, FATCA is creating an array of issues, starting with the fact that some of their entities may qualify as FFIs under the law.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

New Jersey’s New ‘Convenience of the Employer Rule’

New Jersey’s New ‘Convenience of the Employer Rule’

Jason Feingertz, Katherine Gallagher & Zach Roop |

The rule is New Jersey’s answer to the question of how to properly source the income of an employee who works at home in one state, for an employer in another state.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2025 ALM Global, LLC. All Rights Reserved.