The controversial Foreign Account Tax Compliance Act, which was introduced in 2010 by President Barack Obama, requires all finance firms outside the US to report details of American account holders to the US tax authorities.
The move was intended to help clamp down on tax evaders who deposit wealth in offshore centres such as Jersey. Jurisdictions that did not comply with the rules were threatened with heavy economic sanctions.
The launch of FATCA led costly compliance projects to be carried out in Jersey’s finance industry, as well as in other business centres. Critics say that it is onerous for US expatriates and has cost businesses around the world billions to administer.
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