US To Unleash FATCA On Russian Banks
Russia and dozens of other countries have been negotiating information-sharing agreements with the US in an effort to spare their banks from such harsh penalties.
But after Russia annexed Crimea and was seen as stoking separatist movements in eastern Ukraine, the Treasury Department quietly suspended negotiations in March.
The new law means that Russian banks that buy US securities after July 1 will forfeit 30% of the interest and dividend payments. The withholding applies to stocks and bonds, including US Treasuries. Some previously owned securities would be exempt from the withholding, but in general, previously owned stocks would not.
Editor's Note: See here for more articles and information about the destructive FATCA law.