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What is FATCA

FATCA requires all foreign financial institutions (banks, investment brokers, etc) to report to the IRS information on financial accounts held by US citizens (including those with dual citizenship), or by foreign entities in which US taxpayers hold a substantial ownership interest. This means that through your bank, the IRS will now be informed about your financial assets and interests.

Unfortunately FATCA has led to many bank accounts of US citizens being closed and/or service being refused. Although no laughing matter this satire provides an explanation: FATCA explained in four minutes.

Source 3 IRS

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