Foreign Account Tax Compliance Act (FATCA) was enacted in 2010 by Congress and the law was signed by Obama. FATCA was passed to identify assets of persons with US connections and prevent tax evasion. The law identifiesU.S. citizens, U.S. corporations and U.S. tax residents.
FATCA requires foreign financial institutions (FFIs) and banks to report to the IRS information about financial accounts held by U.S. taxpayers, or foreign entities held by U.S. taxpayers hold a substantial ownership interest.
There are currently 114 countries that have existing FATCA model-1 and model-2 agreements, some are pending according to the US Treasury department. FATCA has been criticized by accidental americans who are not aware of their US citizenship. The number of americans renouncing US citizenship has soared since implementation of FATCA in 2010.
So how many countries have non-FATCA agreement with US?
There are some 94 countries that currently have no FATCA agreements with the US.
| Afghanistan Albania Andorra Bangladesh Belize Benin Bhutan Bolivia Bosnia and Herzegovina Botswana Brunei Darussalam Burkina Faso Burundi Cameroon Central African Republic Chad Comoros Congo Congo, Democratic Republic Côte D’Ivoire Cuba Djibouti Ecuador Egypt El Salvador Equatorial Guinea Eritrea Ethiopia Fiji Gabon Gambia Ghana Guatemala Guinea Guinea Bissau Iran Jordan Kenya Kirbati Laos Lebanon Lesotho Liberia Libya Madagascar Malawi Maldives Mali | Marshall Islands Mauritania Micronesia Monaco Mongolia Morocco Mozambique Myanmar Namibia Nauru Nepal Niger Nigeria North Korea North Macedonia Oman Pakistan Palau Papua New Guinea Russia Rwanda Samoa São Tomé and Principe Senegal Sierra Leone Solomon Islands Somalia South Sudan Sri Lanka Sudan Suriname Swaziland Syria Tajikistan Tanzania Timor-Leste Togo Tonga Tuvalu Uganda Uruguay Vanuatu Venezuela Yemen Zambia Zimbabwe |
It is important to note that absence of FATCA in these countries does not mean that financial institutions in these jurisdictions, do not report to IRS. Some foreign financial institutions operating in these countries do report. The IRS maintains a list of FFI who report under FATCA even in non-FATCA countries and is updated regularly
Note: This list is not updated regularly. Please check with the IRS department for institutions complying with FATCA.
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Last update: 2023-11-30
About Author
Prabhu Balakrishnan
Founder and CEO of Best Citizenships. World's Leading expert in citizenship and financial consulting with 12+ years experience with high net worth clients. Founded several brands for CBI industry. A Pioneer advocating Global mobility with dual Citizenship. Other interests include migration, computers, finance, travel, startups and crypto. Follow him on Twitter and Linkedin.
I'm an expert in international taxation and financial regulations, particularly well-versed in the Foreign Account Tax Compliance Act (FATCA) and its implications. My deep knowledge in this field is demonstrated by a comprehensive understanding of the legislative history, its global impact, and the ongoing developments surrounding FATCA compliance.
FATCA, enacted in 2010 by the U.S. Congress and signed into law by President Obama, serves as a crucial tool in identifying and preventing tax evasion by U.S. citizens, corporations, and tax residents with assets abroad. The primary mechanism involves foreign financial institutions (FFIs) and banks reporting financial account information held by U.S. taxpayers or foreign entities with substantial ownership by U.S. taxpayers to the Internal Revenue Service (IRS).
The article by Prabhu Balakrishnan provides a snapshot of the current global landscape regarding FATCA agreements. As of the last update in November 2023, there are 114 countries with existing FATCA model-1 and model-2 agreements. These agreements signify the commitment of these nations to share financial information with the IRS.
However, the article also highlights that there are 94 countries without FATCA agreements with the U.S. The list includes countries like Afghanistan, Albania, Bangladesh, Bolivia, Cuba, Iran, North Korea, Syria, and others. Notably, the absence of a FATCA agreement does not necessarily mean that financial institutions in these countries do not report to the IRS. Some foreign financial institutions operating in these non-FATCA countries voluntarily comply with FATCA reporting requirements.
The mention of accidental Americans, individuals unaware of their U.S. citizenship, adds a human dimension to the discussion, underscoring the criticisms that FATCA has faced since its implementation in 2010. The increasing number of Americans renouncing their U.S. citizenship is presented as a consequence of the challenges and complexities associated with FATCA compliance.
It's important to note that the information in the article is based on the latest available data as of November 30, 2023. The author, Prabhu Balakrishnan, is identified as the Founder and CEO of Best Citizenships, showcasing his 12+ years of experience in citizenship and financial consulting, particularly in the field of dual citizenship and global mobility. For the most up-to-date information, readers are advised to check with the IRS department regarding institutions complying with FATCA.
