Who is affected by FATCA?

The FATCA regulation applies to accounts and custodial accounts of private customers and to U.S. companies in which U.S. persons hold an ownership interest of at least 25 percent.

In principle, financial institutions are required to report customers with full tax liability in the USA, i.e. customers with U.S. citizenship or with permanent residency in the USA. Customers who are possibly liable for taxation according to bank information and for whom certain U.S. ties are determined also have to be reported. German financial institutions are obliged to investigate customer data to determine the existence of these U.S. ties within two years after July 1, 2014. A shorter period of 12 months applies to customers with assets worth more than USD 1 million. In contrast, customers with assets worth up to USD 50,000 are not reportable.