Proposed regulations: FBAR reporting changes | KPMG | GLOBAL

Proposed regulations: FBAR reporting changes

Proposed regulations: FBAR reporting changes

The Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury Department issued a release announcing that a notice of proposed rulemaking would be issued to revise the regulations implementing the Bank Secrecy Act regarding “Reports of Foreign Bank and Financial Accounts” (FBAR).


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The proposed rule [PDF 446 KB] would:

  • Expand and clarify the exemptions for certain U.S. individuals with signature or other authority over foreign financial accounts, by amending the FBAR regulation and eliminating the requirement for officers and employees of companies/entities to report on accounts for which they have signature or other authority, but no financial interest, due solely to their employment, provided that their employer has an FBAR filing obligation to report the foreign financial account
  • Remove the special rules permitting limited account information to be reported when a U.S. person has a financial interest in or signature authority over 25 or more foreign financial accounts, and instead require all U.S. persons required to file an FBAR to report detailed account information on all foreign financial accounts for which they are required to file an FBAR
  • Require institutions to maintain a list of all officers and employees with signature or other authority over foreign financial accounts, with this list to be made available to FinCEN and law enforcement upon request
  • Make other changes, including a change to the filing date for FBAR reports due in 2017 and a revision to reflect electronic filing of FBARs

Filing date

The FBAR is a calendar year report with the 2015 calendar year FBAR due June 30, 2016. However, beginning with the 2016 calendar year, as changed by recent legislation, the due date for FBAR reporting will be April 15 of the year following the December 31 report ending date.

Extensions provided by various FinCEN notices during the last five years are not addressed in the proposed regulations. Read TaxNewsFlash-United States

As noted in a footnote in the proposed rule, FinCEN stated that it “understands that, as part of the final rule, it would need to determine the effect of the provisions of this proposed rule on earlier FBAR deferrals.…” The proposed regulations do not provide for a proposed effective date.

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