Mutual fund and fund provider officials and participants in certain kinds of defined contribution plans would be exempted from filing Report of Foreign Bank and Financial Accounts, or FBAR reports, under proposed rules published on Feb. 26 by the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). FBAR is the form used to report foreign accounts holding more than $10,000 under terms of the Bank Secrecy Act. In the case of the fund officials, the exemption would only apply to those individuals who, while having signature authority over the foreign accounts, do not have a financial interest in the accounts.
In the case of institutions like mutual funds, the proposed rules say, “FinCEN believes such relief is appropriate in the light of the federal oversight of these entities.” But while individuals in such instances would not have to file, a report would have to be filed on behalf of the mutual fund itself. Individuals in government DC plans or IRA account owners would not have to report on foreign accounts “held by or on behalf of the plan or IRA.”
Source: Fund Action
