The US Treasury Department has announced that it is engaging in discussion with more than 50 countries to develop an intergovernmental approach to the implementation of the Foreign Account Tax Compliance Act. The announcement, issued on 8 November, is the latest in a series of US Treasury Department pronouncements reflecting an increasing focus on implementing FATCA bilaterally through agreements with other countries, rather than attempting to unilaterally implement FATCA through US domestic law.
This approach addresses policy concerns expressed by many other countries, which have affirmed that combating tax evasion and increasing international tax transparency is not merely a US concern but is shared by all countries, whether developed or developing, and is more appropriately addressed bilaterally or multilaterally.