FATCA and Guatemala (August 2014 update)

As of the publication of this article, roughly 110 countries either have FATCA agreements in-place with the United States or are in discussions. Thus far, Guatemala has not yet signed an agreement. But there was an article last month in the Prensa Libre (on the topic of FATCA) that leads us to believe that an agreement is imminent.

Photo by: Adalberto H. Vega

The Prensa Libre article addressed FATCA as if an agreement has already been signed. Simultaneously, Guatemalan banks have begun collecting W-9s from U.S. citizen account holders. The key information on a W-9 is the social security number. When Guatemalan banks begin transmitting account information along with a SSN, the IRS will be able to pursue U.S. citizens and green card holders for not reporting foreign earned interest. In addition, there may be penalties for not filing the FBAR or Form 8938.

Our best guess is that Guatemala will become a FATCA-compliant country within the next 12 months. For U.S. expats living in Guatemala, it’s probably a good idea to get compliant before FATCA becomes effective.

If you have any questions about FATCA and Guatemala or need more information contact us today. We are here to help.