Many Challenges Remain Under FATCA Rules, Foreign Banking Groups Say

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Proposed rules on the Foreign Account Tax Compliance Act do not fully address operational and systematic challenges presented by the new law or fully look into alternatives, two international banking groups tell the government. The letter is one of many pouring in on the proposed rules, which implement a law requiring foreign banks to disclose U.S.-owned accounts to the U.S. Internal Revenue Service or face, in some cases, a 30 percent withholding tax. The Institute of International Bankers and the European Banking Federation say if these concerns remain unaddressed, they will threaten the ability of banks to participate in the system despite their best intentions to do so.