Tax · US Reporting
FATCA — Foreign Account Tax Compliance Act
United States law requiring foreign financial institutions to report on accounts held by US persons (citizens, Green Card holders, US tax residents). The UAE has signed an Intergovernmental Agreement implementing FATCA.
In practice
Practical effect: every UAE bank asks new account holders to declare US-person status, and reports US persons' account balances and income to the IRS. Penalties for non-compliance are severe for the bank — and therefore for the customer.