09 Mar Senate Votes to Amend Bill to Crack Down on Foreign Financial Institutions Aiding Tax Evasion
On March 8, 2012, the Senate amended the surface transportation bill (S. 1813) to include provisions that would allow the United States Treasury to prohibit United States banks from honoring credit cards or accepting wire transfers from foreign banks that the Treasury considers to “significantly impede” United States tax enforcement. Under the bill, the Treasury’s new authority will be added to provisions already giving the Treasury similar authority to block money launderers.
The Foreign Account Tax Compliance Act (FATCA), signed into law in 2010, requires, in some circumstances, additional withholding obligations on payments made from the United States to non-compliant foreign financial institutions, and this senate bill may close the loop by covering the reverse, i.e. payments into the United States from non-compliant foreign financial institutions.
The final senate vote on the bill is expected to occur on March 13Disclaimer: This blog and website are public sources of general information concerning our firm and its lawyers, as well as the information presented. They are intended, but not promised or guaranteed, to be correct, complete, and up-to-date as of the date posted. This blog and website are not intended to be, and are not, sources of legal opinion or advice. The materials, information, and communications on this blog and website do not apply to any particular person, entity, or situation, and do not apply to you or to your specific situation. You will need to consult with an attorney and/or other appropriate professional about your specific situation. Thank you.