Recent Changes to FBAR Reporting Obligations

March 07, 2011
The Financial Crimes Enforcement Network recently issued a final rule to amend the Bank Secrecy Act implementing regulations regarding the Report of Foreign Bank and Financial Accounts (“FBAR”). The FBAR is used for U.S. persons to report a financial interest in, or signature or other authority over, one or more financial accounts outside the United States. The final rule codifies several changes proposed by FinCEN in 2010, provides additional clarity on the types of non-U.S. accounts required to be reported and addresses the scope of U.S. persons that are required to file. This update examines the requirements and implications of the final rule, particularly for financial institutions, their officers and employees.