by Nick Giambruno, Senior Editor
If you’ve never heard of the Foreign Account Tax Compliance Act (FATCA), you’re not alone.
Few people have, and even fewer fully grasp the terrible things it foreshadows.
FATCA is a U.S. law that forces every financial institution in the world to give the IRS information about its American clients. Complying with it is a huge financial and administrative burden, measured in hundreds of billions of dollars. It’s a paper shuffler’s dream come true.
FATCA is the reason the vast majority of banks, brokerages, and other financial institutions outside of the U.S. shun American clients.