The evolution of FATCA and its impact on Lebanon

Abstract

This thesis was conducted to examine the impact of the evolution of FATCA on Lebanon. This study discusses the evolution of the U.S tax system, and its attempt to combat U.S tax evasion beginning with the Qualified Intermediary Program and ending with the U.S Foreign Account Tax Compliance Act (FATCA). Moreover, it entails the evolution of the FATCA regulations and analyzes this evolution with all the modification of these regulations. A detailed timeline of the evolution of the FATCA status as well as the projected timeline are highlighted. Interviews with four head of legal compliance officers from Bank of Beirut sal, BBAC sal, Cedrus Banks sal, and Fransabank sal were conducted to collect primary data which was then analyzed and processed by a comparative study with two banks, FNB sal and Fransabank sal, in 2013. Based on the analysis of the collected data, the conclusion reflects the great negative impact of the evolution of FATCA regulations on the Lebanese banks especially as the implementation of these procedures contradicts the Lebanese Banking Secrecy Law.