After publishing final rules regarding people reporting their signature authority over foreign financial accounts, the Financial Crimes Enforcement Network (FinCen) received questions and comments about reporting for certain types of accounts. In response FinCen delayed the reporting requirement for individuals with signature authority over these types of accounts until June 30, 2012.
The most problematic cases are the signatory employees on forgien accounts in instituations controlled by US banks. Notice 2011-1 delayed the FBAR filing requirement for employees or officers of certain banks who had signature authority and no financial interest in a foreign account of a entity controlled by that bank. This delay also applied to employees of the entity controlled by the bank who had signature authority over those accounts. Similarly, Notice 2011-2 delayed the FBAR filing requirement for “officers and employees of Authorized Service Providers who have signature or other authority over (but no financial interest in) a foreign financial account owned or maintained by an investment company” registered with the Securities and Exchange Commission.
So, individuals described in Notices 2011-1 and 2011-2 have not been required to file FBARS yet because while their original FBAR filing deadline was extended until June 30, 2012, Notice 2012-1 furthered extended their FBAR filing deadline until June 30, 2013. On December 26, 2012, Notice 2012-2 further delayed the FBAR filing requirement for these individuals until June 30, 2014.
Let’s hope the third time is the charm, and that FinCen will provide guidance on the FBAR filing requirements for these individuals soon.