No, it's not. The internal storage is formatted as ext4, which is the default filesystem for most Linux distributions and Android.
Code:
u0_a38@android:/ $ cat /proc/mounts | grep msm_sdcc
/dev/block/platform/msm_sdcc.1/by-name/system /system ext4 ro,relatime,user_xattr,barrier=1,data=ordered 0 0
/dev/block/platform/msm_sdcc.1/by-name/efs /efs ext4 rw,nosuid,nodev,relatime,user_xattr,barrier=1,data=ordered 0 0
/dev/block/platform/msm_sdcc.1/by-name/userdata /data ext4 rw,nosuid,nodev,noatime,user_xattr,barrier=1,journal_async_commit,data=ordered,noauto_da_alloc,discard 0 0
/dev/block/platform/msm_sdcc.1/by-name/cache /cache ext4 rw,nosuid,nodev,relatime,user_xattr,barrier=1,data=ordered 0 0
/dev/block/platform/msm_sdcc.1/by-name/persist /persist ext4 rw,nosuid,nodev,relatime,user_xattr,barrier=1,data=ordered 0 0
/dev/block/platform/msm_sdcc.1/by-name/modem /firmware vfat ro,relatime,fmask=0177,dmask=0000,allow_utime=0022,codepage=cp437,iocharset=iso8859-1,shortname=mixed,errors=remount-ro 0 0
The only partition formatted as VFAT is the firmware partition.
The reason Touchwiz formats the cards to EXFAT instead of something less proprietary (ext4), is because Samsung knows that 90% of its customers use Windows. If you were to take an ext4-formatted card out of the phone and put it in an SD Card reader, Windows won't detect it. Windows will not detect any filesystem that M$ did not create themselves. However, if your card is going to stay in the phone, your best bet is to download a small Linux live CD and use that plus an SD Card reader to format your 64GB card to ext4 on your computer. Then, you don't have to worry about stupid 4GB file limitations, and it will still work in CyanogenMod.
So, can people please stop recommending to format 64GB cards as FAT32 and recommend using ext4 instead? It just makes more sense considering the unnecessary limitations of FAT32 compared to ext4. Why would you want to cripple a $90 SD card with something like FAT32 when you can use ext4 and unlock the card's full potential?