FATCA Basics

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Welcome to KnowledgeCity's FATCA Basics training course. The Foreign Account Tax Compliance Act is also known by the acronym FATCA. FATCA started as a United States law to address the financial crime of offshore tax evasion by United States citizens. FATCA has since evolved into a global reform for tax compliance and reporting requirements, which is why it is sometimes referred to as the most significant financial crime law in decades. In FATCA Basics, we will start with an introduction of what FATCA is and how FATCA works. We will review background perspective on FATCA, the general framework for how FATCA works, and key terms used in FATCA. We will study FATCA from a background perspective, what FATCA is, the brief history of why FATCA reform developed, and why FATCA is referred to as the most significant financial crime law in decades. We will discuss the general framework for how FATCA works, who has authority over FATCA, and who is impacted by the FATCA laws. And we will round out this chapter with key terms used in FATCA, the key concepts of the rules such as foreign financial institutions, participating foreign financial institutions, Non-participating foreign financial institutions, intergovernmental agreements, U.S. indicia, U.S. withholding agents, and preexisting accounts. At the end of FATCA Basics, you should be able to explain the most basic, Core, fundamental ideas of what FATCA is and how FATCA works. Let's begin the first lesson: Background Perspectives.