FATCA : Foreign Account Tax Compliance Act

Monday, September 1st, 2014

A new United States federal law aimed at foreign financial institutions (FFIs) and other financial intermediaries to prevent tax evasion by US citizens and residents through the use of offshore accounts. It requires United States persons, including individuals who live outside the United States, to report their financial accounts held outside of the United States, and requires FFIs to report to the Internal Revenue Service (IRS) about their U.S. clients. The FATCA provisions were included in the HIRE ACT which was signed into US law on 18 March 2010.