Regular readers of this blog are not strangers to the odd acronym FATCA. As we have noted in past posts, what that stands for is the Foreign Account Tax Compliance Act.
Passed in 2010, in the wake of the Great Recession, FATCA represents what amounts to what some call America's global tax law. And as Forbes observed recently, after a four-year time frame, the law is now in full effect.
What the law requires is that foreign banks let the U.S. know about any Americans who are holding cash in accounts in sums of more than $50,000. If institutions fail to comply, they run the risk of being hit with a 30-percent penalty and being blocked out of U.S. markets.