European investors face increased compliance to gain US withholding tax exemptions

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European investors face increased compliance to gain US withholding tax exemptions

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A lesser-known part of the Foreign Account Tax Compliance Act (FATCA) will prevent US issuers from selling bearer debt to foreign investors from next week, which may hit demand for US bonds in the European market because of the increased compliance requirements for holders to benefit from US withholding tax exemptions.

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