Middle East: Review of Foreign Account Tax Compliance Act's Regional Impact Urged

Analysis

Al Baraka's Chief Executive has called for a review of the Foreign Account Tax Compliance Act's impact on regional financial institutions over concerns about the risks to the finances and reputations of Middle Eastern banks who don't comply with FATCA's requirements

Since January 2013, US and foreign financial institutions have been required to identify and report their US citizen account holders annually. Any large deposits must be reported to the US Internal Revenue Service.

The reporting can be done through direct agreement between the IRS and a financial institution, or through an international agreement with the US and the financial institution's host country.

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