In plain words: you don't have to own a foreign account to have disclosure duties — even being a signatory or having authority over someone else's foreign account can require reporting.
Signing authority is reportable
Schedule FA specifically asks about accounts in which you have signing authority — not just accounts you own. So a resident who can operate a foreign account may have to disclose it, even without a beneficial interest.
Who typically gets caught
- Company officers/directors with signing authority over a foreign subsidiary's account.
- Family members added as signatories on a relative's foreign account.
- Finance staff operating an employer's overseas account.
- Trustees or agents operating accounts for others.
Why it exists
The law casts a wide net to prevent people hiding behind the technicality of 'not owning' an account while effectively controlling the money in it.
Ownership vs authority
Disclosure of signing authority is about control, separate from the question of beneficial ownership (who the money really belongs to). Both may need reporting, depending on the facts.
How to handle it
- Identify every foreign account you can sign on.
- Disclose signing authority in Schedule FA.
- Keep clear the distinction between authority and ownership.
- Take advice where your role is official or fiduciary.
Frequently asked questions
Must I report an account I only sign on? Signing authority over a foreign account is reportable in Schedule FA.
Even if the money isn't mine? Yes — authority is reportable separately from ownership.
Who commonly forgets this? Company officers and family signatories.
How Vakil Help Desk helps
Vakil Help Desk advises residents, returning NRIs and professionals on foreign-asset disclosure (Schedule FA), Black Money Act notices, assessments, penalties and prosecution — alongside linked FEMA and PMLA matters. If you hold foreign assets or have received a notice, we can help you get compliant and respond correctly.
This article is for general legal awareness, not individual legal advice. The Black Money Act, its thresholds, disclosure rules and the tax treatment of foreign assets change over time and depend on your residential status and facts. Please consult a professional before acting on a foreign-asset or disclosure question.