The original intention of FATCA was to prevent overseas money laundering and tax evasion by the ultra wealthy. Unfortunately, the regulations have mostly impacted the finances of middle class Americans and banking institutions of developing countries.
Banks that fail to comply with FATCA regulations may be hit with a 30% on US based transactions. Many banks around the world have decided to turn their backs on American customers due to the bureaucratic headache.
The financial institutions of Caribbean nations cannot simply ignore FATCA since their economies are heavily invested in international finances. The regulations have caused capital to move away and has decreased the flow in international investments.
The United States have black listed 15 Caribbean nations as tax havens. Some US have cut off or restricted services to these countries because of this.
Antigua & Barbuda became the most recent nation to give into the demands of FATCA. All American owned bank accounts with over $50,000 will now be reported.
Kamla Persad Bissessa, a politician from Trinidad and Tobago, had written a letter by hand reminding Donald Trump to repeal FATCA. Trump had made remarks about repealing FATCA, but we are left waiting to see whether or not he will deliver.
Senator Rand Paul previously introduced a bill to repeal FATCA, but was ultimately shut down by the Democrat dominated Senate. With the hypocritical two party system, we may never see such a bill come to life again.