Saturday, December 2, 2017
U.S. Senators Rand Paul (R-KY) and Roger Wicker (R-MS) introduced legislation to repeal the Foreign Account Tax Compliance Act (FATCA). U.S. Representative Mark Meadows (R-NC) introduced a companion bill in the U.S. House. FACTA, a federal statute enacted in 2010, requires foreign financial institutions to report private financial information on U.S. citizens or else face a 30% withholding tax on U.S.-source income.
In response to the law, many foreign banks simply choose to deny any banking services to U.S. citizens because of the burdens and costs of compliance and fear of running afoul of the law.
Adapted from a news release from Senator Rand Paul.