ATTORNEY GERARD LEVINS: FACTA stands for Foreign Account Tax Compliance Act. FACTA is a pervasive law enacted by the U.S. in 2010. The purpose was to offset a projected revenue loss. In my opinion, FACTA will eliminate the secrecy in foreign banks, foreign financial institutions, and foreign trusts.
Congress' purpose in enacting FACTA was to impose withholding and disclosure requirements on foreign institutions as well as foreign taxpayers. The target of FACTA is to bring non-law abiding citizens who live overseas into the U.S. tax compliance system by requiring these taxpayers to file a new form 8938 as well as the FBAR which is now known as FinCEN 114. In addition, FACTA requires foreign entities and financial institutions to disclose information to U.S. tax authorities