What does FATCA stand for?
Q. FATCA stands for- Published on 17 Feb 17
a. Foreign Account Tax Compliance Act
b. Foreign Account Trade Company Act
c. Financial Account Tax Compliance Act
d. Fiscal Account Tax Compliance Act
ANSWER: Foreign Account Tax Compliance Act
The Foreign Account Tax Compliance Act (FATCA) is a 2010 United States federal law to enforce the requirement for United States persons including those living outside the U.S. to file yearly reports on their non-U.S. financial accounts to the Financial Crimes Enforcement Network (FINCEN).
It requires all non-U.S. (foreign) financial institutions (FFIs) to search their records for indicia indicating U.S. person-status and to report the assets and identities of such persons to the U.S. Department of the Treasury
(It is intended to detect and deter the evasion of US tax by US persons who hide money outside the US. FATCA creates greater transparency by strengthening information reporting and compliance by providing rules around the processes of documenting, reporting and withholding on a payee.)