Banks like HSBC and Deutsche Bank have turned away business from American wealthy clients as implementation for a new rule that cracks down on wealthy Americans hiding money from Uncle Sam in overseas accounts, reports Bloomberg.

The Foreign Account Tax Compliance Act, or FATCA, will be implemented in January of 2013. The new law requires foreign banks to gather information on American clients and their accounts. Banks say it will add compliance costs to their business, and some foreign bankers are calling the rule “draconian.”

Read more at Bloomberg.

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Amber Baillie
A Colorado native, Amber Baillie graduated from the University of Northern Colorado with a bachelor’s degree in journalism and mass communications. For over three years, she wrote for the Air Force Academy's official base newspaper and has written articles for Your Boulder and the Cheyenne and Woodmen Editions. For the Business Journal, she covers cyber, aerospace and defense, and nonprofit news.