Short note on FATCA
Foreign Account Tax Compliance Act (FATCA) requires that all financial
institutions (including Indian mutual funds) need to report financial
transactions of US persons and entities in which US persons hold a substantial
ownership.
Enacted to prevent tax evasion through foreign investments.
Key details required: Country of birth, Country of citizenship, country of tax
residence, TIN from such country.
Currently made mandatory for all investors (existing and new) in Indian
mutual funds.
For non-individual investors, Ultimate Beneficial Ownership (UBO) details
have to be provided.