The memorandum was signed on Friday in Washington by Swiss ambassador to the U.S, Manuel Sager and Mark Mazur, assistant secretary for tax policy.
It summarizes the obligations of Swiss financial institutions and confirms the simplified self-declaration process for “exempt Swiss beneficial owners” under the FATCA agreement signed on 14 February 2013.
Eventually, it is stated that Swiss financial institutions can generally apply definitions from the implementing provisions of the US Department of the Treasury if these simplify matters relative to the definitions in the FATCA agreement.
FATCA establish new rules on conducting future business with US citizens by forcing banks and a range of other institutions to name their clients or apply a 30 percent withholding tax.
Under the Swiss-negotiated version, banks, securities dealers, insurance companies, trustees, foundation and company administrators would need their clients’ permission before they could identify them to the US authorities.