Federal Council brings FATCA Act into force
Bern, 06.06.2014 - Following the entry into force of the FATCA agreement on 2 June 2014, the Federal Council decided during today's meeting to bring the FATCA Act approved by parliament into force on 30 June 2014. This will facilitate Swiss financial institutions' implementation of the new FATCA regulations for US persons. The worldwide implementation of FATCA will commence on 1 July 2014.
The FATCA agreement between Switzerland and the United States, which was approved by parliament in September 2013, came into force on 2 June 2014 by means of an exchange of notes. It simplifies matters for Swiss financial institutions when implementing the US Foreign Account Tax Compliance Act (FATCA), which covers all US persons. FATCA implementation in Switzerland is based on Model 2, which means Swiss financial institutions disclose account details directly to the US tax authority with the consent of the US clients concerned. The United States will have to request data on recalcitrant clients through normal administrative assistance channels.
Parliament approved the FATCA implementing act in September 2013, at the same time as it approved the FATCA agreement. The referendum against the act did not come to fruition. The act, together with the ordinance on disclosure obligations, will now come into force on 30 June 2014.
On 21 May 2014, the Federal Council approved the draft mandate for negotiations with the United States on switching to Model 1, which provides for the automatic exchange of information. It is still unknown at the present time when there will be a corresponding agreement.
Address for enquiries
Mario Tuor, Communications, State Secretariat for International Financial Matters SIF, +41 58 462 46 16, email@example.com