<p>"This would expose them to the risk of substantial US fines."</p>
<p>That is the "stick" that encouraged most nations to adapt a FATCA IGA making data collection according to FATCA rules (reporting on US person financial accounts above a certain threshold), the law of those countries.</p>
<p>There is some bluff in that "stick" as well.</p>
<p>European Nations may take this stance: As the US thus far has failed on its promises of reciprocity of FATCA data, European Nations will stop sending FATCA data until the US sends "like for like" data. What this implies is that the US has broken the agreements and that may be used as justification for European Nations to end their side of it, or pause the data sending until the US provides reciprocal information which would not happen thus ending the "ëxchange." Indication from the US Bankers Association is that US banks would block any such requirements due to the cost of of implementation. Additionally, there may be opposition, one may imagine, in the US heartland were FATCA style information would require persons opening/having a bank account to certify that they are a US citizen/ or citizen of any other country under perjury if they lie. Note also opposition to including a citizenship question in the upcoming US census.</p>
<p>Not mentioned in the article is that the US has not signed up to the global CRS information exchange (that requires banks to report data for residents of other countries), and that the US is recognised as among the top two tax haven countries in the world. Europe could justifiably put the US on a tax haven black list. There are states such as Delaware that do not require the disclosure of beneficiaries of accounts.</p>
<p>Also not mentioned in the article is a lawsuit in Canada against the Canadian Government - with two Accidentals as complainants - that the Canadian FATCA IGA violates the Canadian Charter of Rights that prohibits discrimination based on national origin. Initiated in 2014 this lawsuit goes to trial in two weeks. Details may be found at The Isaac Brock Society.</p>
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