FATCA is a complex and comprehensive set of rules enacted by US Congress and enforced by the US Internal Revenue Service (IRS) designed to prevent offshore tax abuses by US persons.

Wide-ranging FATCA rules require global financial institutions, investment entities (including funds and other investment vehicles) and insurance companies to report details on their US clients to the IRS (either directly or via the local tax authority). Any non-US financial institution that does not do so will be subject to a 30% withholding tax obligation on US sourced income and gains.