What U.S. Attorneys Need to Understand in 2025
Global tax transparency continues to reshape how attorneys advise clients on cross-border investments and financial disclosures. The Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS) are two powerful frameworks driving this transformation. Although they share a similar goal—preventing offshore tax evasion—their structure, enforcement, and international reach differ in critical ways.
For attorneys handling international clients, understanding the distinctions between FATCA and CRS is not just beneficial—it’s essential for effective counsel and risk management in 2025.
What Is FATCA? Understanding the U.S. Framework
FATCA, enacted in 2010, is a U.S. federal law that compels foreign financial institutions (FFIs) to report information about accounts held by U.S. taxpayers or entities with significant U.S. ownership. The objective is clear: to prevent Americans from hiding income and assets in offshore accounts.
Under FATCA, FFIs that fail to comply face a 30% withholding tax on certain U.S.-source payments. To streamline the process, the United States has entered into intergovernmental agreements (IGAs) with more than 100 jurisdictions, establishing data-sharing procedures with the IRS.
For attorneys advising individuals, corporations, or funds with international exposure, understanding FATCA compliance is critical. CLE tax programs on FATCA give attorneys practical guidance on issues like entity classification, due diligence requirements, and the evolving IRS enforcement landscape.
What Is CRS? The Global Standard for Financial Transparency
While FATCA focuses on U.S. taxpayers, the Common Reporting Standard (CRS), introduced by the Organization for Economic Cooperation and Development (OECD) in 2014, operates as a multilateral reporting system. CRS enables participating jurisdictions to automatically exchange financial information about nonresident account holders with one another.
Over 100 countries now participate in CRS—except the United States. This means that while other jurisdictions exchange data reciprocally, the U.S. receives information through FATCA but does not send it under CRS.
For attorneys advising multinational clients, this creates a unique compliance environment. A client may have reporting obligations under CRS in one country, even though the U.S. does not participate. Attorneys must understand how these overlapping regimes impact disclosure obligations and data privacy risks across jurisdictions.
Compliance Implications for Attorneys in 2025
The year 2025 brings increased enforcement and tighter reporting standards under both FATCA and CRS. The IRS continues expanding its use of data analytics to identify undisclosed accounts, while the OECD’s CRS 2.0 framework enhances digital reporting, expands asset coverage (including cryptoassets), and improves data quality controls.
For attorneys, this evolving landscape underscores several priorities:
- Conduct thorough due diligence on clients’ global account structures.
- Stay informed about updates to intergovernmental agreements and IRS guidance.
- Address privacy concerns arising from automatic data exchange and cross-border compliance obligations.
Advising clients effectively in this environment requires more than basic knowledge—it requires continuous professional education and awareness of international trends.
Why CLE FATCA Training Matters
With the rapid pace of regulatory change, CLE FATCA courses have become essential for attorneys handling tax, corporate, and international matters. These programs provide practical instruction on:
- Managing FATCA and CRS compliance obligations;
- Understanding enforcement trends and disclosure pitfalls; and
- Integrating best practices into client advisory strategies.
Participation in CLE programs not only helps attorneys meet continuing education requirements but also strengthens their ability to guide clients confidently through evolving cross-border tax regimes.
Conclusion
FATCA and CRS have redefined global tax compliance and continue to shape the financial reporting landscape in 2025. While FATCA remains a uniquely U.S. initiative and CRS a worldwide standard, their interaction influences nearly every aspect of cross-border financial law.
For U.S. attorneys, staying ahead of these developments through CLE FATCA education ensures accurate, forward-looking advice in an increasingly interconnected financial world. Mastery of both frameworks is no longer optional—it is a professional necessity.
Join Our CLE Webinar, FATCA & CRS: Tackling 2025 Reporting Hurdles with Confidence
As the global regulatory landscape grows more complex, financial institutions, family offices, and multinational organizations face heightened scrutiny under stricter reporting standards and the rollout of CRS 2.0.
This CLE webinar will explore both the regulatory and operational dimensions of FATCA and CRS reporting. Gain practical strategies for achieving compliance precision, managing reporting complexities for investment structures and family offices, and preparing for intensified enforcement under the new global framework.
Don’t miss this opportunity to earn CLE credit while gaining actionable insights to strengthen your compliance strategy for 2025 and beyond. Reserve your spot today!