FATCA is a federal law of the United States (“US”) aimed at combating offshore tax evasion by US persons. The law approved by the US in 2010. According to FATCA, Foreign Financial Institutions (“FFIs”), must report financial information about US persons.
The UAE signed an Intergovernmental Agreement with the United States of America on 17 June 2015 with an effective (“go-live”) date of 1 July 2014 (“UAE-US IGA”).
Under Federal Law No. 9 of 2016, the UAE-US IGA is ratified and establishes the framework for information exchange between reporting UAE financial institutions (“Reporting UAE FIs”) and the IRS. On 6 July 2015, the UAE Ministry of Finance (as the UAE competent authority) issued guidance regarding the UAE-US IGA (“Guidance Notes”).