The Tribune

The Ministry of Financial Services yesterday said it had joined forces with industry regulators to launch a survey that will assess the financial services sector’s readiness for the Foreign Account Tax Compliance Act (FATCA).

The Ministry has linked with the Central Bank of the Bahamas, the Securities Commission of the Bahamas, the Inspector of Financial and Corporate Service Providers and the Compliance Commission to examines preparations already undertaken, and planned, by providers deemed ‘foreign financial institutions’ (FFIs) under FATCA.

The survey also aims to provide the Government with an estimate of the costs, both financial and human, which will be incurred to become FATCA compliant.

Ryan Pinder, minister of financial services, said: “FATCA preparations are well advanced in the Bahamas. I have installed a Minister’s Advisory Committee consisting of private sector participants, the regulators and the relevant public sector officials, including the Ministry of Finance and the Attorney General’s Office.

“We are closely reviewing both Inter-Governmental Agreement (IGA) Models, and also examining the agreements which have recently been finalised to determine the best way forward for the Bahamas.

“I continue to see the sovereignty of the Bahamas as an asset, as the Cabinet of the Bahamas, and ultimately the Prime Minister, decide the best route for the Bahamas rather than external pressures. The Bahamas will be ready.”

FATCA was signed into US law in 2010 through the US Hiring Incentives to Restore Employment Act.

Its effective date is January1, 2013. FATCA has the effect of requiring Foreign Financial Institutions (FFIS) to report certain account information to the US Internal Revenue Service (IRS) with respect to persons considered US residents for tax purposes.