Mexico and the United States Sign FATCA IGA

Mexico became the third country to sign a FATCA intergovernmental agreement (“IGA”) with the United States on November 19.  The Mexican IGA is a reciprocal agreement based on the Model I government-to-government approach under which financial institutions in Mexico will report information required by FATCA to the Mexican government which will automatically forward such information to the U.S. IRS.  Annex II to the IGA excludes from FATCA reporting Mexican governmental organizations and insurance institutions for pension and survival as defined in Article 159, fraction IV of the Mexican Social Security Law, as well as certain fideicomisos (Mexican trusts), personal retirement plans, Mandatory Savings administered by the Mexican Retirement Administration and voluntary and Complementary Savings administered by the Mexican Retirement Funds Administrators.

Click here to view a copy of the Mexico-U.S. IGA.