ECONOMY

Deal with IRS on bank account data

The agreement between Greece and the United States Internal Revenue Service, providing for the mutual exchange of data regarding bank deposits, is in its final stretch.

Greece has consented to the application of the Foreign Account Tax Compliance Act (FATCA) between Greece and the US, which would allow Greek authorities to ask the IRS to supply data on the deposits of Greek citizens in the States, while the American authorities can also demand information on US citizens’ accounts in Greece.

That process will allow for the examination of suspected incidents of money laundering as well as tax evasion. Reciprocity on data exchange became possible after Greece ensured confidentiality in the processing of data through the processing of the FATCA framework by the Hellenic Bank Association.

After the agreement is signed, it will have to be ratified by a law passed in the Greek Parliament. Greece is one of the few remaining European Union members not to have ratified that agreement yet. However in some cases, such as in Bulgaria, the US can demand details on its citizens’ bank accounts in a European bank while not having to issue data from US banks.