The US Foreign Account Tax Compliance Act (FATCA) is a key piece of US federal legislation intended to improve tax compliance involving foreign financial assets and offshore accounts. FATCA requires Foreign Financial Institutions (FFIs) to identify any US account or policy holders and disclose their balances, receipts, and withdrawals to the US Internal Revenue Service (IRS) or the local tax authority. Non-participating FFI and non-compliant account holders may be subject to a 30 percent withholding tax on certain US source income.”]
Source: https://www.bankinfosecurity.com/whitepapers/fatca-key-impacts-achieving-compliance-w-959