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FATCA is the acronym for the Foreign Account Tax Compliance Act. It is a US federal law enacted by the US govt. to curb offshore tax evasion by US persons. We would like to show you a description here but the site won’t allow us. We would like to show you a description here but the site won’t allow us. FATCA stands for Foreign Account Tax Compliance Act, and it is an important law that requires foreign financial institutions to report information about U.S.