FATCA bites hard

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12 September 2018 

The United States has extradited and convicted a bank official in the federal court in Brooklyn to possible maximum 5 years imprisonment for defrauding the United States by failing to comply with Foreign Account Tax Compliance (“FATCA”).


Despite the protection of intergovernmental agreements (IGA) with the jurisdictions where the non-compliance occurred, the Internal Revenue Service (“IRS”) has bypassed the IGAs and saw fit to take direct enforcement action. This is a concerning development as it sets a strong precedent and shows the extent to which the IRS will go to ensure FATCA compliance.


Foreign Financial Instructions (“FFI”) must have demonstrable systems and procedures in place to avoid regulatory action. The consequences of non-compliance can have personal ramifications.


Hansuke is currently engaged in assisting financial institutions across the globe, and in particular Responsible Officers, to ensure that the systems are fit for purpose. Please contact us if you have concerns about your compliance with FATCA.

Ali Kazimi

Managing Director

Tel: +44 (0) 203 865 0626

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Hansuke Consulting Limited is registered in England and Wales number 10136213 with its registered office at: 71-75 Shelton Street, London WC2H 9JQ. Hansuke Consulting Limited is an accredited and regulated member firm of the Institute of Chartered Accountants in England and Wales (ICAEW).


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