On November 8, the U.S. Treasury announced it had engaged in discussion with over 50 jurisdictions for the implementation of the Foreign Account Tax Compliance Act (FATCA).

United Kingdom has chosen the model 1 of the first Intergovernmental Agreement.  This is the first agreement signed between the US and another government.

U.S. Treasury hopes to conclude negotiations by year-end with other jurisdictions in the Americas including France, Canada, Mexico and the Netherlands.

Argentina and the Cayman Islands are actively engaged in a dialogue towards concluding an intergovernmental agreement.

Also, U.S. Treasury is working to explore options for intergovernmental engagement with Bermuda, Brazil, the British Virgin Islands, Chile and Sint Maarten.

After reviewing the UK FATCA IGA, it is ComplianceAid opinion that this type of agreement is beneficial to reporting businesses.  The IGA model 1 includes a provision waiving the requirement to withhold funds on behalf of the IRS.  However, due diligence and reporting will still be required. Further, FATCA withholding will still be required for FFIs in IGA countries if they make payments to non-participating FFIs in non-IGA countries.

At this stage it is clear that FATCA has gain traction and will be implemented.
Your business should start preparing immediately.

If your country has not yet taken a public stand on FATCA we recommend your professional association write to the Minister of Finance.  ComplianceAid has provided assistance to professional associations in drafting such letters.