Canadian banks have the right to share information with the United States

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Canadian banks have the right to share information with the United States

FATCA requires Canadian banks to share information of Americans or Canadians with dual nationality.

The Federal Court of Appeals has upheld the constitutionality of a law that allows Canadian institutions to share account information with US authorities.

Two women born in the United States who now live in Canada, Gwendolyn Louise Deegan and Kazia Highton, challenged Canadian provisions implementing a 2014 agreement between the two countries that makes information sharing possible.

Both women argued, unsuccessfully, in Federal Court that the provisions violated the Charter of Rights and Freedoms guarantee against unreasonable seizure, prompting them to take their case to the Court of Appeal.

The United States Foreign Account Tax Compliance Act, known as FATCA, requires banks and other institutions located in countries other than the United States to report information on accounts held by U.S. individuals, including Canadians with dual nationality.

The Canadian government has argued before the Court of Appeals that failure to comply with the measures would have had serious repercussions on the Canadian financial sector, its customers and the economy in general.

Among the information from Canada shared with the Internal Revenue Service of United States include the names and addresses of account holders, telephone numbers account, account balances and details such as interest, dividends and other income.

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