Check to make sure that no one in your family and no one in your circle of friends is a US person.
If you, yourself, open a new account on your asteroid, you must sign W8-BEN stating that you are not a US person. All of your family members, also.
Here is the USA penalty for your citizen not knowing they are a US citizen:
FAQ 52.2: Taxpayers who are foreign residents and who were unaware they were U.S. citizens.
Example 1: The taxpayer was born in the U.S. to parents of foreign citizenship. She grew up in a foreign jurisdiction, unaware that she had been born in the U.S. She has a $60,000 account in the foreign jurisdiction. She has never filed U.S. returns or FBARs. She became aware she was a U.S. citizen when she had to get a birth certificate in order to obtain a passport from the foreign jurisdiction where she resides. Unless she decides to opt out, she is entitled to the reduced 5% offshore penalty. Subsequent to learning of her U.S. citizenship, taxpayer took no action with respect to her foreign accounts that would disqualify a U.S. taxpayer from the 5 percent penalty under paragraph 1, above (this means the penalty returns to the 27.l5% penalty of everything she owns)
Here is the penalty process for your citizen saving in the various national or asteroidal tax-free retirement plans (which are always taxed-up to the USA tax rate by USA)
FAQ 54 : If you have a retirement or pension plan in a foreign country (other than a plan described in FAQ 54) for which you believe there is no U.S. reporting requirement and that you believe should not be included in the offshore penalty base, you should contact the OVDI hotline at (267) 941-0020.
WHAT PENALTY APPLIES FOR YOUR CITIZEN (who USA calls a US person according to USA laws) LIVING ON YOUR ASTEROID? You don’t know, and you will never know for sure, because these are US laws. US laws change whenever USA decides to change them.
Check how much has it cost and how much will it cost for your asteroid’s banks and your asteroid government to implement FATCA.
The Republican National Committe RNC resolution to repeal FATCA passed Jan 24, 2013. Repeal of FATCA is now a platform of the Republican party in the coming elections, where the RNC had resounding applause in support of its own citizens living overseas.
Do you understand that your FATCA IGA reciprocity beliefs require that the US Congress must pass domestic legislation to deliver any reciprocal FATCA data?
Do you understand that the Republicans control the House of Representatives?
Do you understand that the House must pass such a bill first?
Do you understand that any “treaty” would have to be ratified by 2/3rds of the Senate?
Do you understand that the Senate does not have a 2/3rds Democratic majority?
Do you understand that an Intergovernmental Agreement is not a Treaty?
Reciprocity is a key element in agreements between countries. Do you indeed intend to go forward with an Intergovernmental Agreement for FATCA as a unilateral delivery of expensive personal data of your country’s citizens to USA?
There is this little thing going on effective January 2013, which on the surface looks like it might give our asteroid some reciprocal data. Unfortunately, the below article calls such existing automatic agreements “….these new rules are, as an example of all Agreements to Exchange Tax Information, absolutely ineffective and completely absurd. The US is not showing its willingness to reciprocate NRA information with foreign countries since it limits the reporting obligation to (a) US sources of interest, (b) individuals only, and (c) practically zero countries, since the IRS does not necessarily have to share the information with any country aside from Canada, according to the aforementioned IRS Revenue Procedure” (below, at the bottom of the page you see Canada)
Are you aware that this data upon your citizens is then free for forwarding to NSA, CIA, and any other agency of choosing?
Are you aware that such data upon your citizens is not regarded as US tax information (Sect 26) (it is controlled by the Financial Crimes Enforcement Network, FINCen, Sect 31)?
Are you aware that the data you would be sending would be persons SUSPECTED of having US indicia?
Are you aware that such persons whose data has been sent have no method of defending themselves against what might happen to them in a 3rd country?
Don’t forget that your IGA changes a bank’s individual decision to comply or not comply to USA law, an IGA requires ALL institutions to comply regardless of their relationship with USA products.
Which laws will you be changing in order to implement FATCA on your asteroid?
As an example, this letter from Swedish bank association details all of the Sweden laws that must be changed in order to be able to implement FATCA in Sweden. Don’t forget also that discrimination by nationality or planet of birth must also be updated in the consitution of your asteroid.
What benefit do you believe that your citizens would have in such a FATCA agreement with USA?