FBAR signature authority: What US persons must know in 2026
If you can move money out of a foreign bank account, the US government may treat you as a filer even if none of the money is yours. That is the core of the FBAR signature authority rule, and it catches thousands of expats every year: employees, corporate officers, business partners, and adult children helping a parent abroad.
This guide covers who has signature authority, when it triggers FinCEN Form 114, the exceptions that apply, and how to report it correctly for tax year 2025.
What is signature authority for FBAR
Signature authority is the power of an individual, alone or with another person, to control the disposition of assets in a foreign financial account by direct communication with the bank or other institution holding the account. It is triggered by control, not by ownership.
The practical test is simple: can you tell the foreign bank to move money, and will the bank act on your instruction? If yes, you have signature authority regardless of whether you own a cent in the account.
The statute and FinCEN Form 114 itself also use the term signatory authority, which refers to the same concept.
Quick answer:
- Threshold: aggregate foreign account value over $10,000 at any point during the calendar year
- Form: FinCEN 114, filed electronically through the BSA E-Filing System
- Deadline: April 15, 2026, for tax year 2025, with automatic extension to October 15, 2026
Any US person with a financial interest in or signature or other authority over foreign accounts falls within the Bank Secrecy Act’s reporting scope, which includes citizens, green card holders, resident aliens, and US entities.
FBAR signature authority definition and scope
The definition rests on control, not benefit. Ownership and beneficial interest sit on a different track called financial interest, while signature authority is about who can act on the account.
A US person can have both, or signature authority only, with no financial stake at all. The full mechanics of the form are covered in our guide to FinCEN Form 114 filing instructions.
The difference between financial interest and signature authority
You can trigger an FBAR filing obligation without owning a single dollar in a foreign account.
Both categories require reporting on FinCEN 114 when the $10,000 aggregate threshold is met, but they differ in one key way: financial interest means you own or benefit from the account; signature authority means you can direct it.
FBAR: financial interest vs. signature authority
| Criteria | Signature authority | Financial interest |
|---|---|---|
| Ownership | None required | Direct or indirect ownership |
| Control | Can instruct the bank to move funds | Owns the account or benefits from it |
| Reporting on Form 114 | Part IV | Part II or Part III |
| Common examples | CFO signing on a subsidiary account, employee paying vendors, POA holder | Personal account, joint account with a spouse, or account held through a controlled entity |
The beneficial owner of the funds is the person with a financial interest. A signature-authority filer is not the beneficial owner but still reports the account because they can control it.
Both categories are walked through in the detailed FBAR filing guide.
Certain foreign accounts must also be reported on both Form 8938 and the FBAR when different thresholds are crossed at the same time.
Signature authority over foreign bank accounts: Who qualifies
A US person does not need to be the account owner. If they can instruct the foreign bank to move funds, they qualify for reporting purposes.
The FinCEN definition captures a wide set of roles, and what matters is whether the person’s name is on the account documentation with the power to direct the disposition of assets, whether they benefit from the money or not.
Common roles that trigger the reporting obligation:
- Corporate officers such as the CFO, treasurer, or controller of a company with foreign accounts
- Authorized employees who can wire funds, pay vendors, or issue checks on a foreign business account
- Business partners named on a joint operating account
- Account co-signers on a family member’s foreign account
- Power-of-attorney holders acting for a parent or relative abroad
An authorized signer is treated as a person with signature authority over the foreign account for FBAR reporting purposes, even when the money belongs to someone else.
This is how corporate roles routinely turn into personal reporting obligations for US expats, and the broader picture for people running foreign entities is in our guide to foreign company tax reporting for US expats.
A US person with signature authority over foreign financial accounts meets the FBAR filing test once the aggregate threshold is crossed, regardless of whether any of the underlying funds belong to them.
The $10,000 threshold rule for signature authority accounts
The $10,000 FBAR threshold is calculated on the aggregate maximum value of all foreign accounts, including those where you only hold signature authority, at any point during the calendar year. The rule is aggregate, not per account.
A US employee with signature authority on a company account that held $9,500 and a personal foreign account that held $600 crosses the aggregate threshold, and both accounts must be reported. The threshold applies to the highest balance each account reached at any point during the year, not the December 31 balance.
Once the aggregate figure exceeds $10,000, every reportable account is included, no matter how small.
The full mechanics are in our guide to determining the maximum annual account balance for FBAR.
The FBAR for tax year 2025 is due April 15, 2026, with an automatic extension to October 15, 2026, and no separate extension request required.
FBAR signature authority examples by role
Even an employee who cannot personally benefit from a foreign account must file an FBAR if they can direct the bank to transfer funds.
The four scenarios below are drawn from common TFX client situations and show how the rule plays out in practice.
1. CFO with signing rights over a foreign subsidiary account. A US-based CFO holds signing authority on a €400,000 operating account of the company’s German subsidiary. She owns none of the funds. She must file FinCEN Form 114, Part IV, for tax year 2025 because the aggregate foreign account value crosses $10,000 and she can direct the bank.
2. US employee authorized to pay overseas vendors. A US software engineer is added as an authorized signer on the company’s Singapore account so he can approve vendor payments during his manager’s leave. His personal accounts are US-only. The employee must review each calendar year in which the authority was effective. An account that remained open after the employee’s signing power ended does not create continuing signature-authority reporting for that employee.
3. Expat business partner on a joint foreign operating account. Two US citizens run a UK Ltd. and share signing rights on the company’s HSBC account. Each has both financial interest and signature authority. Each files their own FBAR and reports 100% of the account maximum, not 50/50, and our guide to filing FBAR jointly walks through the mechanics.
4. Power-of-attorney holder for an elderly parent abroad. A US citizen holds a POA on her mother’s Italian bank accounts so she can pay medical bills. She has signature authority even though she never withdraws for herself. If the mother’s aggregate account value crosses $10,000 during the year, the daughter files FBAR reporting the accounts in Part IV.
Additional role-based scenarios for reporting foreign bank and financial accounts apply the same rule set to signers, officers, and beneficiaries.
FBAR signature authority only situations
These situations catch people who assume that because they own nothing in the account, they owe nothing to FinCEN. That is not how the Bank Secrecy Act works.
A US person with signature authority and no financial interest must file FinCEN Form 114 whenever the aggregate maximum value of foreign accounts crosses $10,000. This is the single most common gap for expat employees of multinational companies.
Green card holders should take foreign account reporting obligations seriously. In some cases, tax or financial-reporting violations may have broader legal consequences, but the effect depends on the underlying facts and applicable immigration law.
FBAR signature authority exceptions and exemptions
One of the most common exceptions applies to certain officers and employees of qualifying US entities, including certain publicly traded companies.
- Officers or employees of a US entity whose equity securities are listed on a US national securities exchange, if the entity files the FBAR
- Officers or employees of certain US financial institutions examined by federal banking regulators
- Officers or employees included in an entity’s consolidated FBAR filed under FinCEN rules
- Officers or employees of certain governmental entities
Additional relief has also been provided by FinCEN through regulations and notices for certain employees with signature authority but no financial interest.
These exceptions apply only when the regulatory requirements are satisfied. In several of the employee exceptions, the employer must file the required FBAR covering the relevant accounts, so employees should confirm that the employer has done so.
The separate FATCA exemption framework is covered in our guide to FATCA reporting and exemptions.
Signature authority on a bank account: How to check
If you can send an instruction to a foreign bank and the bank will act on it, you almost certainly qualify for FBAR purposes. The determination is factual, not legal.
Work through the following five steps for each foreign account you touch during the calendar year:
- Identify every foreign financial account you can access, personally or through work
- Ask whether you can instruct the institution to move funds by direct communication
- Check whether you are named on account documents as an authorized signer
- Calculate the aggregate maximum value across all accounts with financial interest or signing power
- Confirm whether an employer exception applies and, if so, that the employer has actually filed
If you clear step 4 at over $10,000 and no exception applies at step 5, you file FinCEN Form 114 for that year through the BSA E-Filing System.
Foreign bank documentation should be reviewed carefully, and our guide to the best international banks for expats covers the account structures most commonly seen.
Corporate officers and signature authority
A US-based CFO who signs off on a foreign subsidiary bank account has FBAR reporting obligations even if the company itself is not a US entity. The signing authority attaches to the individual, not the entity.
A US person who signs on a foreign company’s account files personally, regardless of the company’s tax residency or ownership structure.
Reporting goes in Part IV of FinCEN Form 114 when the officer has signature authority but no financial interest, and Part II or Part III applies if the officer has a financial interest in the account under the FBAR rules, such as through qualifying ownership or control, rather than signature authority alone.
The broader picture of entity choices for US expats abroad is in our guide to business abroad and choosing optimal business structures.
Joint account holders and signature authority
Spouses who are joint holders of a foreign account each independently meet the FBAR reporting threshold if the aggregate value exceeds $10,000. A joint account holder has both financial interest and signature authority, which creates a dual reporting obligation.
Each US person on the account reports 100% of the maximum balance, not a 50/50 split. This is a common source of reporting errors for married couples abroad.
Under a narrow exception, one spouse may file on behalf of both when all three of these are true:
- Both spouses are US persons
- All reportable accounts are jointly owned with the filing spouse
- Form 114a is signed and kept on file authorizing the filing
Our guide to whether your FBAR needs to include your spouse’s bank accounts covers when this election works.
Penalties for failing to report signature authority on FBAR
Willful failure to report a foreign account where you hold signature authority can result in substantial civil penalties. In some cases, particularly where multiple years or violations are involved, the total penalties may exceed the account balance.
FBAR penalties are set out in the civil penalty framework of the Bank Secrecy Act under 31 U.S.C. § 5321 and are adjusted annually for inflation.
- Non-willful violations. The maximum civil penalty is $16,536 per report, per year, for penalties assessed on or after January 17, 2025. Under the Supreme Court decision in Bittner v. United States, this penalty applies per FBAR form, not per account.
- Willful violations. The maximum is the greater of $165,353 or 50% of the account balance at the time of the violation, per report, per year, for assessments on or after January 17, 2025. Willful reporting violations may be penalized on a per-account basis. The maximum is generally the greater of the applicable inflation-adjusted fixed amount or 50% of the account balance at the time of the violation.
Criminal penalties can also apply in cases involving intentional concealment, false statements, or tax evasion, and IRS Criminal Investigation has prosecuted US persons for filing false tax returns and failing to report foreign bank accounts.
FBAR penalties are separate from FATCA penalties, and Form 8938 fines are calculated under different statutes and start at $10,000, as covered in our guide to FATCA penalties for non-compliance.
US persons who missed reporting signature authority accounts in prior years may qualify for the IRS Streamlined Filing Compliance Procedures if they meet the eligibility requirements, including non-willful conduct and proper reporting of foreign account income. Depending on which streamlined program applies, penalties may be eliminated or reduced.
How to report signature authority on FinCEN Form 114
Signature authority accounts are reported in Part IV of FinCEN Form 114, separate from accounts where you hold a financial interest. The filing process runs entirely through the electronic system operated by the Financial Crimes Enforcement Network.
Six steps cover the mechanics for tax year 2025:
- Gather account details for every foreign account where you have signature authority: institution name, address, account number, and account type
- Determine the maximum account value for each account during calendar year 2025, using the Treasury Reporting Rates of Exchange for December 31, 2025, to convert foreign currency to US dollars
- Log in to the BSA E-Filing System and select FinCEN Form 114
- Complete Part II for accounts you own separately, Part III for jointly owned accounts, and Part IV for accounts where you have signature authority but no financial interest
- Submit electronically by April 15, 2026, with automatic extension to October 15, 2026
- Retain records for five years from the FBAR due date, including account statements and the electronic filing acknowledgement
Certain officers or employees who report accounts solely because of signature authority may qualify for a recordkeeping exception under the FBAR regulations. If the exception does not apply, the standard FBAR record-retention rules continue to apply.
The parallel obligations under FATCA and CRS are covered in our guide to FATCA and CRS reporting requirements.
Common mistakes and misconceptions about signature authority FBAR
The single most common FBAR mistake among expat employees is assuming their employer automatically handles the filing. Always verify in writing.
Five errors account for most of the signature-authority filings we see corrected during Streamlined submissions:
- Assuming no ownership means no filing obligation, which ignores the signature authority rule entirely
- Forgetting to include employer-controlled accounts in the aggregate calculation for the $10,000 threshold
- Relying on the publicly-traded employer exception without confirming the employer actually filed the FBAR covering the relevant accounts
- Using year-end balance instead of the maximum annual balance, which understates the peak and can move an account below the threshold on paper when it was actually above
- Missing the October 15 automatic extension deadline, which is the last date to file the current year’s FBAR without triggering late-filing analysis
The IRS receives information about many foreign financial accounts through FATCA reporting, and more foreign banks are disclosing American accounts to the US government, increasing its ability to identify potential reporting gaps. Foreign account reporting gaps are much easier for the IRS to spot than they were a decade ago.
Signature authority and FATCA: Understanding both obligations
Signature authority alone triggers FBAR reporting but does not create a Form 8938 FATCA filing obligation. FATCA requires a financial interest in the account.
FBAR and FATCA are two separate systems with different thresholds, definitions of reportable accounts, and filing destinations. FinCEN administers the FBAR and the IRS administers Form 8938.
A US person with signature authority only files the FBAR but generally does not need to include the account on Form 8938, since FATCA reporting is scoped to specified foreign financial assets in which the taxpayer has a financial interest.
The line between the two systems matters most when a US expat first receives bank correspondence about their US status, which our guide to receiving a FATCA letter from a foreign bank covers in detail.
Late filing and amended FBAR for signature authority accounts
US persons who missed reporting signature authority accounts in prior years may qualify for the IRS Streamlined Filing Compliance Procedures if they meet the eligibility requirements. Depending on which streamlined program applies, penalties may be eliminated or reduced.
Three paths cover most late-filing scenarios:
- Streamlined Filing Compliance Procedures. Require certification of non-willful conduct along with three years of amended or delinquent returns, as applicable, and six years of FBARs. Taxpayers eligible for the Streamlined Foreign Offshore Procedures generally are not subject to an offshore penalty, while the domestic procedures include a 5% miscellaneous offshore penalty.
- Delinquent FBARs. Taxpayers who failed to file required FBARs should file the delinquent FBARs electronically as soon as possible and follow current IRS and FinCEN guidance. Depending on the facts, some taxpayers may instead need to use the Streamlined Filing Compliance Procedures or another applicable compliance option.
- Amended FBAR process. Handles corrections to already-filed reports. Amended FBARs are submitted through the BSA E-Filing System with “Amended” selected and the prior report’s BSA identifier entered, not mailed to the IRS.
Frequently asked questions
Yes. A US person with signature authority over a foreign account files FinCEN Form 114 when the aggregate maximum value of all reportable foreign accounts exceeds $10,000 at any point during the calendar year. Ownership is not required, and the account is reported in Part IV of the form.
A signature authority FBAR filing is a FinCEN Form 114 submitted by a US person who can direct a foreign bank to move funds but does not own the account or the funds in it. The account is reported in Part IV, and the same $10,000 aggregate threshold and April 15 deadline apply.
Only if the employer qualifies for a specific FinCEN exception, most commonly the one for officers or employees of a US entity listed on a US national securities exchange, and only if the employer actually files an FBAR covering those accounts. Get written confirmation, since verbal assurance does not preserve the exception if no FBAR is on file.
Signature-authority-only accounts are reported in Part IV of FinCEN Form 114. Submit the form electronically through the BSA E-Filing System by April 15, with an automatic extension to October 15 and no separate extension request required. Records must be kept for five years from the due date.
For assessments on or after January 17, 2025, non-willful violations carry a maximum civil penalty of $16,536 per report, per year, applied per FBAR under Bittner v. United States. Willful violations carry the greater of $165,353 or 50% of the account balance, per report, per year. Criminal prosecution is possible in cases involving concealment or false statements, and the government’s enforcement history against undisclosed Swiss bank accounts shows how far these cases can escalate.
No. Signature authority alone does not create a Form 8938 filing obligation, since FATCA requires a financial interest in the specified foreign financial asset. A US person who holds signature authority but no financial interest files the FBAR but does not include the account on Form 8938. Someone with both financial interest and signature authority may file both when their combined foreign asset value crosses the applicable FATCA thresholds.
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