Swiss and US FATCA agreement (2024)

I just discovered that the US and Switzerland signed an updated FATCA agreement, which will purportedly make it easier for Swiss banks to take on US Citizen bank customers -- starting in 2027 (excerpt from AI search result below).

To any Swiss banking experts or otherwise knowledgeable people: Does this development make it more likely that Swiss banks will deal with swiss residents who are also US Citizens? That is, they might start offering standard bank account services to them?

"2. Implications for Financial Institutions (FIs)

The change is generally seen as a positive for Swiss Financial Institutions as it streamlines compliance and reduces administrative burdens:

Reporting Channel: Swiss FIs will no longer report account data directly to the US Internal Revenue Service (IRS). Instead, they will report to the Swiss Federal Tax Administration (FTA), which will then transmit the data to the IRS.

Reduced Administrative Burden: The obligation for FIs to undergo regular FATCA certification will no longer apply."

The move to the FATCA Model 1 (from the current Model 2) is expected to take place at the start of 2027.

If the change results in lower administrative costs, it is possible that Swiss banks will lower their thresholds for taking on customers who are taxable in the US. The impetus to move away from the current terms and conditions will likely vary between banks, depending on the importance/attractiveness of US persons in their target consumer groups for different products.

Thank our for reply, Daniel. I do appreciate your insight.