FBAR Reporting Requirements for Foreign Financial Accounts: FinCEN Releases Notice of Proposed Rulemaking to Revise Certain Provisions of the FBAR Regulations

Sullivan & Cromwell LLP - March 7, 2016
Download

The Financial Crimes Enforcement Network of the Department of the Treasury (“FinCEN”) released a notice of proposed rulemaking (the “NPRM”) on March 3, 2016 that would, if finalized, replace certain current exceptions (the “Current Exceptions”) from the requirement to file a Report of Foreign Bank and Financial Accounts (an “FBAR”) with a new exemption (the “New Exemption”) for officers, employees and agents of an entity who only have signature or other authority, but no financial interest, in the accounts of the entity or a related entity.  The New Exemption would apply only if the entity or a related entity is required to file an FBAR in respect of the account.  The NPRM would also remove a special rule (the “Special Rule”) that provides for simplified reporting for persons with financial interest in, or signature or other authority over, 25 or more accounts.