What is the FBAR?
The Report of Foreign Bank and Financial Accounts (FinCEN Form 114, commonly called the FBAR) is a mandatory anti-money-laundering disclosure filed electronically with the U.S. Treasury Department's Financial Crimes Enforcement Network.
The $10,000 Aggregate Threshold
You must file an FBAR if you are a U.S. Person (citizen, Green Card holder, or tax resident alien) and the combined highest balances of all your foreign bank, brokerage, pension, and fintech accounts exceeded $10,000 USD at any moment during the calendar year.
- Aggregate Rule Example: If you hold three foreign accounts in the UK, Germany, and India with peak balances of $3,500, $4,000, and $3,000, your aggregate total is $10,500. You must file FinCEN Form 114 and report all three accounts.
Statutory Penalties
Non-willful failure to file carries civil penalties exceeding $16,000+ per violation (adjusted annually for inflation). Willful failure to file can trigger penalties of the greater of $100,000+ or 50% of the account balance.