Eastern Caribbean Currency Union working to comply with FATCA

The Eastern Caribbean Central Bank has established a working group to ensure that financial institutions which operate within the Eastern Caribbean Currency Union (ECCU) are prepared to comply with the requirements of the United States Foreign Account Tax Compliance Act (FATCA).

FATCA, which the US Government enacted in March 2010, seeks to combat tax evasion by US citizens and resident non-citizens with US-sourced income in Foreign Financial Institutions outside of the US.

FATCA requires the instituitions to report information to the US Internal Revenue Service (IRS) on assets held by American taxpayers, or by foreign entities in which US taxpayers hold substantial ownership interest.

The Eastern Caribbean Currency Union working group on FATCA will comprise representatives from the Attorneys General Chambers, Inland Revenue Departments, Single Regulatory Units/Financial Services Authorities, and Ministries of Finance of the ECCU member States, and representatives from the financial services industry and the Eastern Caribbean Central Bank.

The working group is tasked with making recommendations to the respective member governments on the appropriate approach for ECCU FATCA compliance, including the development of a harmonized legislative and regulatory compliance framework, and monitoring the compliance status of the respective territories and financial institutions.

Source: Tax News