Do you have accounts abroad? Then you should know about FATCA (Foreign Account Tax Compliance Act).
Foreign Financial Institutions (FFIs) that open accounts for U.S. residents are obligated to comply with U.S. laws and requirements:
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Register with the IRS and provide information about clients who are U.S. residents.
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Conduct additional, detailed due diligence of clients to establish their tax status and citizenship, and regularly update this information.
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Provide reports to the IRS about clients who are U.S. residents. These reports include information on income and financial assets.
Non-compliance with FATCA requirements can lead to sanctions, including fines and even exclusion from the program, which can have serious consequences for foreign banks.
U.S. residents who open accounts abroad, in turn, must also be prepared to provide the necessary information and comply with U.S. legislation regarding foreign financial accounts.
