The Bahamas working towards FATCA compliance

Government officials in The Bahamas have revealed that they are reviewing the U.S. Foreign Account Tax Compliance Act (FATCA) in a move that suggests that the island-nation is working to become compliant.

The aim of FATCA is to identify American taxpayers having accounts at foreign financial institutions (outside of the United States) and enforce the reporting of those accounts the U.S Internal Revenue Service – the American government agency responsible for tax collection and tax law enforcement.

In September last year, the Jamaican bankers association urged the Caribbean Community (CARICOM) to resist the controversial U.S. tax law (FATCA).

Financial firms in the Bahamas and the Caribbean Community are still not clear how they will comply with the extra-territorial law and not break local privacy laws.