While the primary objective under FATCA is reporting, the penalty for non-compliance requires a payor
(including a U.S. withholding agent) of U.S.-sourced income and gross proceeds to withhold 30% on
payments made to non-U.S. entities that do not certify their compliance with FATCA. To avoid this tax,
FFI’s must enter into agreements with the IRS to share the identities of U.S. account and asset holders.
Other affected NFFE’s seeking to avoid the tax will be required to provide information relating to any of
their U.S. owners.Share