FATCA Agreements
In the struggle to fight credit fraud, the US signed FATCA Agreements with several countries worldwide,
intended to enforce collaboration and information sharing between the authorities.
In 2014, Israel, second only to Switzerland, also signed FACTA.
This act demands financial institutions to recognize and pass on client reports from one country’s authorities to the other.
Most of the financial institutions in Israel are subject to FACTA, yet some types of accounts are exempt.
On August 1, 2016, the Knesset Finance Committee passed the 2014 regulations.
As of today, clients who are US citizens/residents are already receiving alerts before their information is passed on to the IRS.
Section 1471 of IRC and FACTA specify which details must be disclosed to the authorities:
- Full name, account holder address, identity number for tax purposes (usually SSN);
- Account number;
- Account balance or worth;
- Gross passive income from the account.