The UAE and US have signed an agreement to implement America’s new Foreign Account Tax Compliance Act (FATCA), the Ministry of Finance announced in a statement carried by state news agency WAM on Saturday.

The agreement means all US citizens in the Gulf state will now have the details of all of their finances held in the UAE provided to the American government, potentially making them liable for additional tax.

FATCA was enacted by the US Congress in 2010 to target non-compliance by US taxpayers using foreign accounts. The US law requires foreign financial institutions to provide annual reports on account information of customers who are US citizens and provides penalties for institutions that do not comply.