A report that clarifies the requirements of the US Foreign Account Tax Compliance Act (Fatca) for financial institutions and their customers has been published by Thomson Reuters. Fatca is a federal law introduced in 2010, which requires all US entities and individuals to report and disclose their cash in foreign banks accounts to Fincen (the Finance Crimes Enforcement Network).

According to Michael M. Lloyd of Miller & Chevalier Chartered, one of the report's authors, the document provides “guidance to help professionals and their clients meet FATCA’s requirements and manage the related risks and costs”.

In particular, it provides clarification on the requirements for dividend and income reporting for financial institutions, as well as a comprehensive analysis of the legislation.

The report's authors were Marianna G. Dyson and Michael M. Lloyd, members of Miller & Chevalier Chartered and the report is published by Thomson Reuters Checkpoint. 'New FATCA Compliance Obligations Facing Business Entities' can be downloaded at no cost.

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CTMFile Take: This is an issue for all corporates subject to US financial reporting and this report could be a useful resource to shed some light on the requirements.