Intergovernmental Agreements (IGAs) with Partner jurisdictions
As an alternative to the final FATCA regulations, the U.S. Treasury published two Model IGAs, i.e. Model I and Model II, which facilitate the implementation of FATCA for FFIs resident in a partner jurisdiction which signed an IGA.
Luxembourg signed a FATCA Model 1 IGA with the Unites States for the exchange of tax information. In this context the Luxembourg government set up with the IGA a legal framework compelling all Luxembourg Financial Institutions to comply with a set of due diligence, withholding and reporting requirements.