Brazil approved the IGA (Intergovernmental Agreement) for the implementation of FATCA (Foreign Account Tax Compliance Act) agreement to exchange tax information and Improving International Tax Compliance with the United States on July 25th. The article was approved at an accelerated rate due to the meeting between President Dilma and US President Barack Obama at the end of the month.
The matter reached the Senate as Legislative Decree Project International Agreements 257/15 and was dispatched for analysis of the Foreign Relations Commission (CRE), where it obtained a favorable opinion for its approval, and then forwarded to the Senate and got unanimous approval.
Most institutions have already registered in FATCA before the US Internal Revenue Service, as provided in this legislation but are waiting for the adoption of national procedures based on the regulation to be issued by the Secretary of Federal Revenue. Anyway considering that the IGA was approved and the agreement became effective as Brazilian law, financial institutions are required to include in their compliance programs the adherence program to FATCA, including adjustments to the processes of “Know Your Customer”, review of internal policies, “due diligence” of customers, internal controls, etc.