FATCA encryption for data transmission | KPMG | GLOBAL

FATCA: Change to encryption for data transmissions

Encryption for data transmission under FATCA regime

The IRS today announced that beginning July 9, 2016, it will no longer accept data packets encrypted with the electronic code book (EBC) cipher mode. Instead, all users will be required to transmit data packets with the cipher block chaining (CBC) cipher mode (which the IRS finds is a stronger algorithm for encrypting data).


Related content

The IRS release states that the revised data packaging process improves the
AES-256 key encryption, as summarized. All other data packaging details, such as data padding, will remain the same.

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