Even if you do not own a foreign bank account, you may still have a duty to report it under U.S. law. If you have signature authority over a foreign financial account—meaning you can control the account’s assets or execute transactions—you may be required to file FinCEN Form 114 (FBAR). This obligation applies to U.S. citizens, green card holders, and residents who serve as corporate officers, directors, attorneys-in-fact, or other agents. This guide explains how to properly report signature authority on the FBAR.
📌 What Is Signature Authority?
Signature authority means you have the legal ability (alone or with others) to control the disposition of funds held in a foreign financial account by direct communication with the institution that maintains the account. It does not require financial interest or ownership.
Examples of Signature Authority:
- A CFO who can initiate wire transfers from the company’s foreign account
- A company director authorized to sign checks from an overseas corporate account
- A legal agent with power-of-attorney over a relative’s account in another country
If you had this authority at any point during the calendar year and the account(s) exceeded $10,000 in aggregate, you must report it.
🧾 Who Must File FBAR for Signature Authority?
- U.S. citizens and resident aliens
- U.S. green card holders
- U.S. residents meeting the substantial presence test
- U.S. employees/officers of corporations, LLCs, trusts, or partnerships with foreign accounts
📋 What Information to Include on the FBAR
When filing FinCEN Form 114 for signature authority, you will need to provide the following:
- Name of financial institution
- Account number(s)
- Maximum value of each account during the calendar year
- Institution address
- Type of authority: Check the box for “signature authority but no financial interest”
🖥️ How to File FBAR with Signature Authority
Use the BSA E-Filing System to complete and submit FinCEN Form 114. You must:
- Indicate your role (e.g., CFO, director, legal agent)
- List the account(s) over which you have signature authority
- Select “No” for financial interest and “Yes” for signature authority
- Provide employer or entity details if you are reporting as part of a company role
🛑 Exceptions to Reporting Signature Authority
There are some narrow exceptions where individuals with signature authority do not need to file a separate FBAR:
- If their employer is a U.S. entity that files a consolidated FBAR including that account
- If a U.S. government agency has signature authority over the account
- Employees of certain publicly traded companies and financial institutions (subject to Treasury guidance)
Important: These exceptions can be complex and limited—consult a tax professional to confirm eligibility.
💡 Example Scenario
Maria is the Director of Finance at a multinational corporation based in the U.S. She has signature authority over six foreign bank accounts used to pay vendors and employees in Europe. Although she is not the owner or beneficiary of the accounts, she must still file an FBAR listing each account because the combined value exceeded $10,000 in 2025.
📅 Deadline for Filing
- Due Date: April 15, 2026
- Automatic Extension: October 15, 2026—no request required
- File Electronically: Only through the BSA E-Filing System
⚠️ Penalties for Non-Compliance
Even if you don’t own the account, failing to report signature authority can lead to significant penalties:
- Non-willful violation: Up to $10,000 per violation
- Willful violation: Greater of $100,000 or 50% of the account value
Willfulness can be inferred from lack of due diligence or ignoring known obligations, so timely filing is crucial.
✅ Summary
If you are a U.S. person with signature authority over one or more foreign accounts that collectively exceeded $10,000 during 2025—even without owning the funds—you are likely required to file FinCEN Form 114. Accurate and timely FBAR reporting helps you avoid steep civil penalties and ensures compliance with U.S. law. Consult a tax advisor if you are unsure whether your signature authority qualifies for reporting or exemption.
