Robert Stack, Treasury deputy assistant secretary (international tax affairs) noted the tension between the requirement in FATCA that foreign financial institutions give the United States information regarding account balances and beneficial owners that banks in the U.S. are not required to give the IRS. “It’s a little awkward for the U.S. to have a standard around the world that we don’t ourselves satisfy,” he said.
However, Stack noted that the United States has committed in its FATCA intergovernmental agreements to seek supporting legislation that will allow for reciprocity of information exchange.
Calling the implementation of FATCA an extraordinary achievement in a short amount of time, Stack said that the OECD’s common reporting standard for the automatic exchange of information has grown out of FATCA. “It is really important to understand that this element of reporting and transparency is catching on like wildfire around the world. I don’t think we’re going to be turning back from it,” he said.