Updated November 2026 · VG CPA PC advisors
What signature authority means
You have signature authority if you can control the disposition of money in the account by direct communication, written or otherwise, with the bank. Being an authorized signer on a parent's account in India, a foreign subsidiary's account, or a family business account abroad are common examples.
The FBAR asks you to report these accounts separately from accounts you own, including the name of the account owner.
Employer accounts and exceptions
Officers and employees of certain regulated entities, such as banks, publicly traded companies and registered investment entities, are generally exempt from reporting signature-only authority over their employer's accounts, though the employer files. Employees of private companies usually do not qualify for that exception.
Business owners must remember that the business itself may have its own FBAR obligation for foreign accounts, separate from the owners' personal FBARs.
Common mistakes
People often assume that because no income from the account belongs to them, nothing needs to be reported. Income reporting and FBAR reporting are separate questions: you may have no income to report and still have an FBAR to file.
Missed signature-authority accounts can usually be corrected through the Delinquent FBAR procedures if all income was properly reported by its owner.