1. Foreign Bank Account Reporting (FBAR): Navigating the Bends in the Road
Mohan Murali, President, Axletree Solutions

2. What are others doing to comply?
Today’s Agenda
What is FBAR?
Does it impact us / me?
What are others doing to comply?
Success Stories
What are the tools available?
Q&A

3. Report of Foreign Bank & Financial Accounts (FBAR)
Established as early as 2003
Monitored and enforced
Prevent incomplete disclosure of income.
US Treasury Directive
Enforced by IRS

4. Having Financial Interest Subject to
FBAR Influence
Outside of USA
Bank accounts,
Brokerage accounts, mutual funds, life insurance and more
Trusts, Entities, Partnerships
Controlled by
U.S. citizens; U.S. residents; US entities,
Having Financial Interest
Influence, Control, Signatory
Subject to
Aggregate value of all accounts exceeded US$10,000

5. FBAR Influence Recordkeeping 5 Years Name maintained on each account.
Account Number or identification.
Name and address where the account is maintained.
Type of account.
Maximum value of each account

6. Qualify requirement against guidelines Penalties can be severe
Does it impact us / me?
Qualify requirement against guidelines
Examples
Penalties can be severe
Negligent: $500
Non-Willful Violation: $10,000
Willful Failure or False Filing: Higher of $100,000 or 50% of balances
Due June 30th for previous Calendar Year

7. Success Story
Chicago Bridge & Iron
Automated
Controlled
Accuracy

8. Industry – Heavy Construction
CB&I Overview
Industry – Heavy Construction
Engineering and Construction
Fabrication Services
Technology
Capital Services
Size (Post 2013 Acquisition of The Shaw Group)
$13 Billion 2014 Revenue
$5.4 Billion Market Capitalization
55,000 employees
Global view
150 + entities with accounts
600 + bank accounts
30 + banks

9. CB&I Needs & Challenges
Acquisition
Doubled the size of the company
Transactions
Partially centralized, partially decentralized (some project based)
No treasury workstation
3 main challenges
Bank account management and maintenance
Daily snapshot of global consolidated cash balance
FBAR compilation, distribution, and interface with IRS
Solution needed connectivity to our banks and our worldwide users

10. CB&I Options and Solution
In house solution
Treasury Workstation
Customized 3rd party solution
Solution Selected: 3rd Party Solution
Customized solution that maintains account database,
Use that account information to prepare & file FBAR reports
Connected via swift to our global banks
Selected Axletree
Selection Criteria
Affordability
Vendor who listened (not upsold)
Functional expertise (Swift Certified Service Bureau)

11. CB&I Success and Future
We achieved our mission and addressed our pain points
Combined company could not use old tools
Future
Now have a platform for growth with global connectivity
New functionality via Swift
Payments?
Open and Close accounts?
Others?
New database products
Tracking of Bonds and Letters of Credit?

12. Tools
Automated Reporting Tools
Checks and Audits
Accurate FBAR reports: Ready to submit

13. Solutions and Providers
SaaS (Cloud) based solutions
Integration with TMS
Built over Bank Account Management
Minimal setup, quick turnaround
Consultancy services

15. Thank You