This advanced, practice-focused seminar examines the global enforcement of U.S. tax compliance through the Foreign Account Tax Compliance Act (FATCA), one of the most far-reaching extraterritorial regulatory regimes in the world. FATCA fundamentally reshaped international banking by requiring foreign financial institutions (FFIs) to identify and report U.S. account holders or face significant withholding penalties.
The course focuses on how lawyers advise financial institutions, multinational corporations, investment funds, and high-net-worth individuals on FATCA compliance, cross-border reporting obligations, and enforcement risk. Students will analyze intergovernmental agreements (IGAs), due diligence requirements, withholding mechanisms, and the interaction between FATCA and global transparency initiatives.
The seminar treats FATCA as a core example of modern extraterritorial regulation, where tax law, financial regulation, and international diplomacy converge. Students will develop practical skills in compliance design, transaction structuring, and regulatory risk management.
This course assumes prior study of tax law, international law, or financial regulation.
Course Objectives
By the end of the course, students should be able to:
1. Understand the structure and purpose of FATCA.
2. Identify compliance obligations for foreign financial institutions.
3. Analyze intergovernmental agreements and their legal implications.
4. Evaluate due diligence and reporting requirements.
5. Understand withholding mechanisms and penalties.
6. Assess compliance risks in cross-border financial transactions.
7. Navigate conflicts between U.S. and foreign legal systems.
8. Design FATCA compliance programs.
9. Advise clients on structuring financial activities to mitigate risk.
10. Analyze enforcement trends and global tax transparency initiatives.
