FATCA Tax Reporting Compliance

United States

2010

Tax & Reporting

Overview

The Foreign Account Tax Compliance Act (FATCA) was enacted in the United States in 2010 as part of the HIRE Act to combat offshore tax evasion. FATCA requires foreign financial institutions (FFIs) and certain non-financial entities to report information about financial accounts held by U.S. taxpayers to the Internal Revenue Service (IRS) or their local tax authorities under intergovernmental agreements (IGAs).

The regulation applies to banks, investment firms, insurance companies, global custodians, fintech platforms, and other financial institutions that hold or process assets on behalf of U.S. account holders, regardless of jurisdiction.

Key Obligations

Identify and report accounts held by U.S. persons or entities with substantial U.S. ownership
Conduct due diligence on new and existing accounts using specified identification procedures
File annual FATCA reports to the IRS or local tax authorities (via Form 8966 or IGA mechanisms)

Withhold 30% on certain U.S.-source payments to non-compliant FFIs or account holders
Register with the IRS FATCA portal and obtain a Global Intermediary Identification Number (GIIN)
Ensure internal controls, recordkeeping, and training related to FATCA compliance

FAQ

Related Regulations

OECD CRS Tax Reporting Standard

Corporate Transparency Act BOI Rule

Bank Secrecy Act AML Law

Stay ahead of risk with Signzy

Explore tools that help you onboard, monitor, and verify with confidence

One Touch KYC

Simplify the Know Your Customer (KYC) process with AI and sophisticated fraud detection algorithms to provide a seamless, efficient, and highly secure user verification.

AML Screening

Comprehensive Anti-Money Laundering screening solutions to detect and prevent financial crimes through advanced monitoring and compliance tools.