US Court rules against FATCA disclosures

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The US government has supported the dismissal of a case bringing several challenges to the FATCA (Foreign Account Tax Compliance Act) and the FBAR (Report of Foreign Bank & Financial Accounts) regimes.
The case wanted to stop the implementation of the intergovernmental agreements between the Internal Revenue Service (IRS) and the US Treasury Department in accordance with other foreign jurisdictions to enforce the FATCA regime.

The claimants called the intergovernmental agreements illegitimate, as a result of not being submitted to the US Senate for prior ruling, consent or approval, whilst also nullifying the rights of those refusing to surrender overseas privacy laws that would otherwise forbid their banks from disclosing any personal information to the Internal Revenue Service.

The court dismissed the claims on the grounds that the FBAR & FATCA reporting requirements need US residents living overseas to report information about their local bank accounts, which should not be taken personally or considered to be a breach of confidentiality.

Moreover, the court granted the defendants’ motion to dismiss the case, and none of the substantial issues in the case were considered.