A French parliamentary report published today urges France to renegotiate its Foreign Account Tax Compliance Act (FATCA) treaty with the United States and says the country should consider unilaterally pulling out if it fails to win concessions to adequately protect dual nationals.
FATCA was introduced in 2010 and France signed up three years later. The Act forces international banks wanting to operate in, or do business with, the US to report any assets held by American citizens overseas.
According to an article in Bloomberg, the report says: "In the case of failure of these negotiations, we should envisage unilaterally pulling out of FATCA and restricting the transfer of information."
Since its introduction, FATCA has made it difficult for American expats and dual nationals to open bank accounts as banks seek to avoid regulatory hassle from the US authorities.
In December, International Investment reported the "practical effect of FATCA has been to close 95% of the foreign banks to US customers. For someone living, working, or doing business abroad, it's nearly impossible to open an offshore bank account."
Lobbying by "Accidental Americans", with little ties to the US other than parentage or birth in the country, have been lobbying the French parliament to revisit the issue.