Michael Lloyd was quoted regarding commitments from 47 countries to implement a new global standard of automatically sharing bank information across borders. The deal, announced by the Organisation for Economic Co-operation (OECD), is a big step towards transparency in banking and stems from the 2010 Foreign Account Tax Compliance Act (FATCA). "The fact that the United States took such significant steps to implement procedures; that generated all of these discussions," Lloyd said. "Banks are trying to develop systems so they don’t have to do it twice -- so that whatever they develop to comply with FATCA will be robust enough to comply with the contemplated OECD standard." Because of FATCA, "banks around the world are already thinking about this. It’s very much on everyone’s mind. And the consequences are severe for non-compliance. So this is inevitable," he said.
There is the potential for peer pressure to encourage enforcement around the world. Each country must enact its own legislation to adopt these requirements and implement the new global standard expeditiously. Although the 47 countries may have committed in this accord to quickly passing new laws, in practice, of course, that could be easier said than done, Lloyd said.