Long arm of US money law

BusinessDay.co.nz

Peter Campbell

01.10.2011

The costs are connected to the Foreign Account Tax Compliance Act (FATCA) passed by the United States Government. Although the legislation has authority within the US only, it puts in place penalties for foreign financial transactions with organisations that do not have information sharing agreements with the US Inland Revenue Service. "Opting out is not an option due to the dominant financial position of the US and the interdependent nature of global finance," said New Zealand Bankers' Association chief executive Sarah Mehrtens.