THE FINANCIAL CRIMES ENFORCEMENT NETWORK (FinCen) was created to safeguard the financial system from illicit use and combat money laundering.
FinCen created a reporting for Foreign Bank and Financial Accounts (FBAR). This reporting is done on Form 114 and it is due today.
You need to file this report if at any time during the year you held an account with a Foreign Bank or Financial Institution of $10,000 or more.
FBAR covers all US persons, which include US citizens, resident aliens( including resident aliens of US territory and US territory entities), trusts, estates, and domestic entities that have an interest in foreign account and at any time during the year has held $10,000 or more.
Let’s review: a US Citizen, resident alien, trust, estate and or domestic entity will report:
- Deposits and custodial accounts in foreign financial institutions
- Ownerships or beneficial interest of 50% or more in an entity
- Foreign Mutual funds
- Financial accounts held at a foreign branch of a US financial institution
- Foreign accounts and foreign non-account investment assets held by foreign or domestic grantor trust for which you are the grantor.