The US Treasury and the Internal Revenue Service have announced a revised implementation schedule for the Foreign Account Tax Compliance Act. Foreign financial institutions affected by FATCA have been given extra time to register.FATCA is an anti-tax avoidance regime aimed at stopping tax abuses by US citizens holding overseas bank and investment accounts. Foreign financial institutions that operate accounts held by US tax-payers or by foreign entities in which US tax-payers hold a substantial interest will have to report details of these accounts to the US Internal Revenue Service.A foreign financial institution can be a bank, insurance company, broker, investment manager or custodian. The sanction for non-compliance is a 30 per cent US with-holding tax on any "FATCA withholdable payment".Last week, the US Treasury issued Notice 2013-43, which gives withholding agents an additional six months before they begin with holding on payments made to foreign financial institutions. Withholding will start after June 30 next year.Foreign financial institutions will have more time to establish new account opening procedures, due diligence rules, reporting arrangements and registration.