The US Treasury recently announced the Model 1 Intergovernmental Agreement between the US and UAE will be considered to be in effect from 21 May 2014, following the publication of jurisdictions which have signed agreements and consented to being included on the list.

Financial institutions based in the UAE will be treated as having an agreement in effect until the end of 2014.

Under FATCA requirements, foreign financial institutions should conduct due diligence to identify and report US persons who have invested in either non-US financial accounts or non-US entities.

Failing to comply with these obligations will result in a 30% withholding tax being imposed.