Season 2 Episode 03:

FBAR and FATCA Explained – Understanding the Differences and Overlap

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In this episode of the Under the Basswood Tree podcast, Basswood Counsel attorneys Rudo Mugwagwa and Gina Lee explain two U.S. cross-border reporting regimes that are often confused: FBAR and FATCA.

The discussion breaks down what each regime is designed to do, how they differ, where they overlap, and why many taxpayers and institutions struggle to understand how the rules fit together. The episode also clarifies who is required to file, what types of accounts and assets are reportable, and why FBAR and FATCA compliance extends beyond simply filing a U.S. tax return.

This is Part 1 of a two-part series focused on providing clarity around FBAR and FATCA for U.S. persons with foreign accounts, global families, business owners, and financial institutions navigating cross-border reporting obligations.

Episode highlights:

• What FBAR is, why it exists, and why it is a reporting obligation

• Who qualifies as a U.S. person for FBAR purposes, including individuals and entities

• How account ownership, joint accounts, and signature authority trigger FBAR filing

• Why maximum account value, not year-end balance, determines FBAR thresholds

• Common FBAR pitfalls, including accounts held for children or through foreign entities

• How FATCA differs from FBAR, focusing on financial institutions and entity-level reporting

Rudo advises on investment funds, corporate, and cross-border compliance matters, with experience across fund formation, governance, and investor-side advisory.

Gina Lee is your trusted guide for U.S. tax law, corporate compliance, and estate planning, providing personalized, strategic counsel to help achieve your financial and personal goals with confidence.

If this episode resonates with what you’re working through, contact [email protected]. We’ll help you bring clarity to the key decisions, risks, and priorities, with the right support across our complementary practice areas.

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