The Foreign Account Tax Compliance Act (FATCA) is a U.S. federal law that requires foreign financial institutions and certain other non-financial foreign entities to report on financial assets held by certain U.S. taxpayers, or be subject to withholding on withhold-able payments.
Carta offers a FATCA compliance product for international clients that includes collecting information via the in-app investor identity verification process. The information is used to identify and generate submission files (i.e. FATCA XMLs) to support fund entities with annual FATCA reporting obligations.