FATCA IGA between Chile and United States Released

The text of the FATCA IGA Agreement between the United States and the Republic of Chile that was signed on March 5, 2014 is now available.

As previously indicated, it is a Model 2 form of IGA whereby Chile agrees to "direct and enable" all Reporting Chilean Financial Institutions to register on the FATCA registration website by July 1, 2014, and to comply with the requirements of an FFI Agreement with respect to due diligence, reporting and withholding. Under the terms of the IGA and the FFI Agreement, Reporting Chilean Financial Institutions will provide account information directly to the U.S. IRS. With respect to accounts opened prior to July 1, 2014, Reporting Chilean Financial Institutions must request each Account Holder's consent to report account information to the IRS. If such Account Holder fails to provide such consent, then the Chilean Financial Institution must report aggregate information about the account, and the United States Competent Authority may make group requests to the Chilean Competent Authority, based on the aggregate information reported to the IRS, for all information about a Non-Consenting U.S. Accounts and Foreign Reportable Amounts paid to Nonparticipating Financial Institutions. Reporting Chilean Financial Institutions must obtain consent from each Account Holder opening an account on or after July 1, 2014, to report information required under FATCA to the IRS as a condition to the opening of such account.

Annex II to the IGA generally follows the Model Annex II for Model 2 IGAs.

See: Chile and U.S. IGA.For more information, please contact Daniel Mulcahy and Mark Howe.