Many financial institutions refuse to entertain US NRI investors because of the newly introduced FATCA
20-Oct-2015 •Research Desk
An NRI from USA has been told by his Certified Public Accountant (CPA) that he can't invest in ULIPs or pension products from insurance companies in India. Is there any law in the US which stops NRIs from investing in ULIPs or pension products in India?
- Debasish Mohanty
Foreign Account Tax Compliance Act (FATCA), a new American law, makes it compulsory for all financial institutions in the world to report comprehensive details of all transactions involving these 'US persons' to the US Government. Many financial companies refuse to accept investments from US NRIs because of this compliance requirement which they believe is very rigid and complex.
You can read about FATCA here.