Denmark Signs FATCA IGA with the U.S.

Denmark and the United States signed a reciprocal intergovernmental agreement ("IGA") and separate Memorandum of Understanding on November 15, 2012, to implement the Foreign Account Tax Compliance Act ("FATCA"). Denmark's IGA is based on the Model 1 form of IGA released by the United States in July and reflects a government-to-government approach under which Danish financial institutions will provide certain information, with respect to U.S. Reportable Accounts to the Danish government, which will be sent on to the U.S. government automatically. Denmark is the second country to sign a FATCA IGA; the United Kingdom signed a reciprocal Model 1 agreement on September 12. Denmark and the United States also signed a separate Memorandum of Understanding clarifying that certain securities registered in the Danish Central Securities Depository ("Depository") that are held by or through one or more Financial Institutions will be treated as held by such Financial Institutions and not by the Depository, although the Depository may report such accounts on behalf of the other Financial Institutions. The IGA will enter into force on the later of January 1, 2013, or the date on which both parties have notified each other that necessary internal procedures for entry into force have been completed. A copy of the IGA and Memorandum of Understanding are attached.

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Click here for the Agreement.See also: Memorandum of Understanding.Related news item: Treasury Department Releases Model 2 FATCA IGA