FATCA – Guilty Until Found Innocent

“There are some who don’t see a link between the Credit Suisse fine and FATCA. Simply put, they both deal with banks assisting in offshore tax evasion. The difference between FATCA and the fine is that in the near future the onus of proof shifts away from the regulator to the institution in question.

Under this new regime the institution in question is guilty until found innocent.”

FATCA & CRS Training. Advice. Consultancy.

There has been much talk of Credit Suisse being fined USD 2.6 Billion by US regulators.

Within hours speculation was rife about which institution would be next to be caught in the crosshairs of US regulators.

Speculation was that the next would be BNP Paribas, not for allegedly facilitating tax evasion but for allegedly facilitating money laundering to countries like Iraq, Sudan and Syria.

The profile of this news story has dipped in the last week or so but the fine allegedly being considered is USD 10 Billion.

The allegations, if true, warrant a substantial fine but there are many, including the French, that consider a fine of USD 10 Billion disproportionate.

Recently, the French Government has been talking a lot about ‘reciprocity’.

But why that word in particular? Surely the French do not believe that American Banks have been facilitating money laundering in Euros? I severely doubt it.


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