Abstract

The Foreign Account Tax Compliance Act (FATCA) is designed to meet the tax evasion of some US people who have accounts in banks outside the United States, which obliges banks to disclose the data and information of their US citizens and foreign nationals with US citizenship to the Internal Revenue Services (IRS), to meet the requirements of the Act. The problem of research is the extent to which Saudi banks comply with the requirements of the FATCA law in order to satisfy the American regulatory authorities, with 200.000 Saudis having US nationality and thus subject to the requirements of the FATCA law. The importance of this research was the extent to which the FATCA Law was applied in a Saudi banking system that did not have a tax system, which was not discussed in previous studies. The research aims at identifying the extent of Saudi banks' commitment to meet the requirements of the FATCA Law to increase the confidence of the US regulatory authorities in the Saudi banking system. The research was based on analytical descriptive methodology using statistical packages of social sciences (SPSS). The research found several results, the most important of which is the positive relationship between the commitment of Saudi banks to meet the requirements of the FATCA law and increasing the confidence of the US regulatory authorities in the Saudi banking system. Addition to the need for Saudi banks to disclose the accounts of their customers who have US citizenship to avoid penalties for non-compliance with the requirements of law Act.