The United States Foreign Account Tax Compliance Act (FATCA) came into force on July 1 to prevent institutions hiding money on their clients’ behalf. FATCA legislation, signed into law in 2010, requires foreign banks to hand over data on clients to the US International Revenue Service (IRS). The law applies to any account with more than $50,000. If a bank does not report such information, it could be subject to a 30 percent withholding tax.
The required information in respect of certain accounts in existence under FATCA will be provided on or after 30 June 2014.
