irslogoWith the enactment of FATCA, the United States wishes to ensure that all income earned worldwide by US taxpayers on accounts held abroad can be taxed by the United States. FATCA essentially requires foreign financial institutions to register with the US tax authorities (Internal Revenue Service, IRS) and report on identified US accounts or else to deduct and transfer a withholding tax.
Since FATCA was enacted in March 2010, it has generated a huge impact on the global financial services market due to its wide remit and the associated cost and effort to implement. Over the last two years I have worked with leading global financial institutions to understand the impact of FATCA.