The adverse effects of FATCA on EU citizens and in particular 'accidental Americans'

17.5.2018

Question for oral answer O-000052/2018
to the Council
Rule 128
Cecilia Wikström, on behalf of the Committee on Petitions

The United States is one of the two countries in the world using a citizen-based taxation system.

Since the entry into force of the US Foreign Account Tax Compliance Act (FATCA) and the related IGAs concluded between Member States and the United States, financial institutions in the EU have been obliged to disclose detailed information on accounts held by presumed ‘US persons’, implying data protection issues. The extraterritorial effects of FATCA and its related IGAs have affected a large number of EU citizens, in particular so-called ‘accidental Americans’ as well as dual EU/US citizens and their non-US family members. FATCA has resulted in an increasing number of EU citizens being denied access to basic banking services in the EU, which appears to be in breach of the Payment Accounts Directive (Directive 2014/92/EU) and of the Charter of Fundamental Rights of the EU.

1. How does the Council intend to include the situation of ‘accidental Americans’ in its transposition assessment of the Payment Accounts Directive, and guarantee the right of all EU citizens to have access to a payment account with basic features without discrimination, in accordance with Articles 15 and 16 of the Directive?

2. Given the significant lack of reciprocity between the US and the EU in the context of FATCA and the non-participation of the US in the Common Reporting Standard of the OECD, what diplomatic and legislative action does the Council intend to take to protect the rights and interests of concerned EU citizens against the extraterritorial effects of FATCA?

3. Does the Council consider that a joint EU approach is needed to adequately protect the rights of EU citizens and ensure reciprocity, in accordance with the highest international standards on tax transparency? In particular, would the Council reconsider the possibility of negotiating an EU-US agreement on FATCA?

4. Could the Council carry out a full assessment of the impact of FATCA on EU citizens, and explain whether a serious discrepancy between EU citizens and residents in different EU Member States exists, especially as regards EU data protection and fundamental rights standards?