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What is FATCA? FATCA stands for Foreign Account Tax Compiance Act and was legislated to prevent money laundering in offshore bank accounts. Under FATCA filing requirements, all US citizens including expats are required to report certain foreign assets to the IRS if they exceed certain thresholds. The law under FATCA requires not only individuals to report foreign assets, but even foreign financial institutions are required to report on the assets of their American clients If the foreign financial institution does not report, they will suffer 30% of tax withholding on certain payments made by anyone from the US. What is the threshold for reporting under FATCA?