US tax law imposes new pressure on banks

The US Foreign Account Tax Compliance Act (Fatca), which is intended to prevent tax evasion by Americans living abroad, will be applied to all financial institutions operating in the Gulf Co-operation Council (GCC) region from July 2014, obliging banks to provide details and personal data on the accounts of all US citizens, Green Card holders and entities controlled by US citizens as signatory authorities. Some smaller institutions have already seen it as a burden too many, and have started to refuse business from potential Fatca targets.