Belgium and US to exchange financial data

Belgium and the United States are to sign a treaty on 23 April that will allow the automatic exchange of bank data from accounts held in both countries. News of the so-called FATCA Treaty was broke by the Belgian Finance Minister Koen Geens (Flemish Christian democrat).

Mr Geens told journalists that the new treaty "will lead to improved enforcement of international fiscal obligations”.

The American Foreign Account Tax Compliance Act (FATCA) was set up to tackle tax evasion by American with foreign bank accounts. Several European countries already have signed treaties with the United States that allow the automatic exchange of bank account details.

The conditions of new treaty will come into force from September 2015.

As a result of the new treaty financial transactions between Belgian banks and the United States will be exempt from a 30% surcharge levied by the United States government on transactions from countries that don’t have a mutual financial data exchange treat with the US.