FATCA: Facts that are Changing Banking Worldwide
FATCA (Foreign Account Tax Compliance Act):
- Effective from 2014
- FATCA requires banks Worldwide (including offshore financial centers, Russia, China etc) to disclose account information where the owner, beneficiary or Directors are American
- Non-compliant banks are fined and frozen out of U.S. markets
Outcome: If your company has Amercian Directors or owners, be prepared for your (non-US) bank to request vast amounts of extra due diligence infomation and/or to decline to open an account, or close your existing account.