Business
Bankers Association of St. Lucia announces compliance with FATCA
Failure of an FFI to submit information could result in a 30 percent withholding tax levied on withholdable payments and may result in the potential loss of critical correspondent banking relationships and this would affect customers’ ability to transact with the USA, our main trading partner.
The services that would be cost affected would be wire transfers, drafts and other payment mechanisms if banks can no longer clear these transactions through U.S. banks.
The banker’s association reminds the public that FATCA does not replace the existing U.S. tax withholding and reporting regimes. It does, however, add additional requirements and complexity to the existing regimes. The IRS expressed its intent to eliminate duplicative reporting and withholdings where possible.
The attributes which cause an individual or business to be classified as a U.S. person include: U.S. citizenship; Being a lawful resident of the U.S. and/or; U.S. corporations, U.S. partnerships/ U.S. estates/ U.S. trusts where the U.S. exercises primary supervision over administration or where one or more U.S. persons has the authority to control all substantial decisions.
The banker’s association notes that the impact of FATCA is far reaching and impacts any person, U.S. or foreign, to the extent that such person is involved in making or receiving payments that fall within the scope of FATCA.
The Bankers Association of St. Lucia reiterates the commitment of St. Lucia’s financial institutions to ensuring regional compliance with FATCA and calls on the public to assist financial partners in that regard. The BASL encourages all clients and prospective clients to visit or call their respective branches for further clarity or details on this issue if they are affected by this new US legislation.
Source: Bankers Association of St. Lucia
