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fatca is a u.s law of march 2010 in which the u.s asks other countries to share information about u.s persons so its purpose is to fight tax evasion and u.s persons are holders of green cards u.s citizens and persons born in the u.s information about u.s persons must be sent to the internal revenue service or what we call the irs which is the body responsible for collecting taxes in the u.s the exchange with the irs happens in two ways depending if the government has signed or not an agreement with the irs so if the government has signed the agreement the exchange occurs directly from the government to the irs if the government of a certain country did not sign the agreement it becomes the financial institutionamp;#39;s duty to do the reporting to the irs and if a financial institution refuses to do the reporting it would be considered a non-participating foreign financial institution now what does this regulation impose on financial institutions first to identify the u.s persons hold
