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A new sensation from the USA: FATCA But what is this exactly? No, not exactly. FATCA is actually a US law and means Foreign Account Tax Compliance Act. Its really not as complicated as it seems. Basically just like many other countries, the USA is dealing with a huge budget deficit. Thats why the USA needs money. And what are the possible sources of a income for a country like this? Thats right. One possibility is tax it. In the past, the USA didnt take full advantage of this possibility. After all, every US citizen who lives abroad actually has to pay taxes in the USA, but only a few really do so. This means the United States are losing a lot of money. Thats why the US government past the new FATCA law. Foreign banks such as banks in Germany are now supposed to identify which of their customers are US citizens. Private customers as well as corporate customers. Even all shareholders who are US citizens and hold more than 25 percent of a company are affected. The banks then send
