Passed in 2010, the U.S. Foreign Account Tax Compliance Act(FATCA) is designed to detect offshore banking activities gearedtoward evading U.S. taxes. The law requires foreign financialinstitutions and other organizations that accept deposits toidentify account holders who may be U.S. taxpayers, then pass oninformation about those individuals to the IRS so that agency canroot out taxes owed. Transactions that involve an undocumentedaccount holder and/or a noncompliant foreign financial institutionwill be subject to a 30 percent withholding tax.

FATCA will have a large impact on foreign financialinstitutions. Treasury & Risk sat down withErick Christensen, vice president and head of the compliancepractice at CapGemini, to find out how the law will impactcorporate treasurers and other finance managers.

T&R: First of all, what are theimpending FATCA deadlines, and who needs to be concerned aboutthem?