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For Immediate Release
September 13, 2016
BAFT Media Contact: Blair Bernstein
(202) 663-5468
Email: bbernste@aba.com
Follow us on Twitter: @BAFT_Global

BAFT Releases FATCA Guidance on Trade Product Fees

 

​WASHINGTON — BAFT, an international financial services association, released its FATCA Guidance: Traditional Trade Product Fees Sourcing Analysis. The guidance, developed by BAFT’s Foreign Account Tax Compliance Act (FATCA) working group, is designed to help practitioners comply with FATCA’s complexities and determine if and how it applies to various trade product fee types.
 
The FATCA working group consists of tax, legal and product specialists from 15 financial institutions and supplier members from the U.S., Canada, Asia and Europe.
 
The working group collated a list of fees levied by U.S. domestic and foreign banks for handling traditional trade products and performed a sourcing analysis for each fee creating a sourcing matrix. The guidance is intended to be a general supplement to the sourcing matrix and provide further clarity on the analysis.
 
“When FATCA tax regulations were originally written, the implications for various commercial fee payments may not have been considered,” said Tod Burwell, president and CEO of BAFT. “We recognized a need for a broad, clearly defined assessment of fees for traditional trade finance products, and information on how to analyze them for withholding and reporting requirements, which led us to develop this guidance.” 
 
The FATCA Guidance document is free for BAFT members and available for purchase for non-members at http://www.baft.org.
   
 BAFT, the leading global financial services association for international transaction banking, helps bridge solutions across financial institutions, service providers and the regulatory community that promote sound financial practices enabling innovation, efficiency, and commercial growth. BAFT engages on a wide range of topics affecting transaction banking, including trade finance, payments, and compliance. The association website is www.baft.org.
 
 
Editor’s Note: For reporters interested in reviewing the FATCA Guidance document, please contact Blair Bernstein at bbernste@aba.com.
 
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