Foreign Account Tax Compliance Act (FATCA) was enacted in 2010 by Congress and the law was signed by Obama. FATCA was passed to identify assets of persons with US connections and prevent tax evasion. The law identifies U.S. citizens, U.S. corporations and U.S. tax residents.
FATCA requires foreign financial institutions (FFIs) and banks to report to the IRS information about financial accounts held by U.S. taxpayers, or foreign entities held by U.S. taxpayers hold a substantial ownership interest.
There are currently 113 countries that have existing FATCA model-1 and model-2 agreements, some are pending according to the US Treasury department.
FATCA has been criticized by accidental americans who are not aware of their US citizenship. The number of americans renouncing US citizenship has soared since implementation of FATCA in 2010.
So how many countries have non-FATCA agreement with US?
There are some 95 countries that currently have no FATCA agreements with the US.
Bosnia and Herzegovina
Central African Republic
Congo, Democratic Republic
Papua New Guinea
São Tomé and Principe
It is important to note that absence of FATCA in these countries does not mean that financial institutions in these jurisdictions, do not report to IRS. Some foreign financial institutions operating in these countries do report. The IRS maintains a list of FFI who report under FATCA even in non-FATCA countries and is updated regularly
Note: This list is not updated regularly. Please check with the US treasury department for any new agreements.