If you have a financial interest in or signature authority over a foreign financial account exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the Financial Crimes Enforcement Network (FinCEN) by filing FinCEN Report 114, Report of Foreign Bank and Financial Accounts (FBAR).
Specifically, FinCEN Report 114 is required to be filed if during the year-
- You had a financial interest in or signature authority over at least one foreign financial account (which can be anything from a securities, brokerage, mutual fund, savings, demand, checking, deposit, or time deposit account to a commodity futures or options, and a whole life insurance or cash value annuity polity) and;
- The aggregate value of all such foreign financial accounts exceeded $10,000 at any time during the year.
The FBAR filing deadline is April 15th, with a six-month extension to October 15th allowed.Earlier this year, FinCEN announced that it will grant filers an automatic extension to October 15th each year- a specific request for extension isn’t required. The penalty for failing to file Form 114 is substantial- up to $10,000 per violation (or the greater of $100,000 or 50% of the balance in an account if the failure is willful)
FinCEN Report 114 must be filed electronically. To file it yourself, go to bsaefiling.fincen.treas.gov/mail.html. Once there, click on “Become a BSA E-Filer” and then click on “File an Individual FBAR: on the next page and complete the form.
Please give us a call if you have any questions or would like us to prepare and file FinCEN Report 114 for you.