From Nick Giambruno, Editor, International Man:
The government has criminalized so many mundane activities that the average American unknowingly commits three felonies a day. That’s according to a study by Harry Silverglate, a civil liberties lawyer.
This happens, in part, because there are plenty of awful laws most Americans have never even heard of. One of the worst of these little-known laws is the Foreign Account Tax Compliance Act (FATCA).
FATCA is a U.S. law that forces every financial institution in the world to give the IRS information about its American clients.
Complying with FATCA is a huge financial and administrative burden, measured in hundreds of billions of dollars. It’s a paper shufflers dream come true.
This is why the vast majority of banks, brokerages, and other financial institutions outside of the U.S. shun American clients. This, in turn, makes it much more difficult to move capital outside of the U.S.