Impact of FATCA Proposed Regulations on Capital Markets Transactions

Recently, Treasury released proposed regulations implementing the Internal Revenue Code sections commonly known as “FATCA”. The proposed regulations would impose reporting and withholding obligations on foreign financial institutions (or “FFIs”), including banks, brokers, custodians, and securitization vehicles, and would impose withholding on certain non-financial foreign entities. This Alert Memo summarizes certain practical implications of the proposed regulations for capital markets transactions.