Caribbean News Now!

About Us Contact Us

Countries/Territories

Jump to your country or territory of interest

Advertise with us

Reach our daily visitors from around the Caribbean and throughout the world. Click here for rates and placements.

Contribute

Submit news and opinion for publication

Subscribe

Click here to receive our daily regional news headlines by email.

Archives

Click here to browse our extensive archives going back to 2004

Also, for the convenience of our readers and the online community generally, we have reproduced the complete Caribbean Net News archives from 2004 to 2010 here.

Climate Change Watch

The Caribbean is especially vulnerable to rising sea levels brought about by global warming. Read the latest news and information here...

Follow Caribbean News Now on Twitter
Connect with Caribbean News Now on Linkedin



News from the Caribbean:


Back To Today's News

Bankers Association of Saint Lucia announces compliance with FATCA
Published on August 12, 2014 Email To Friend    Print Version

CASTRIES, St Lucia -- For the last few years financial institutions have been preparing for the new reporting requirements for United States clients which form part of the Foreign Account Tax Compliance Act (FATCA). The Act is intended to increase transparency for the Internal Revenue Service (IRS) with respect to US persons that may be investing and earning income through non-US institutions.

As of July 1, 2014, financial institutions in Saint Lucia and the rest of the Eastern Caribbean Currency Union (ECCU) member countries, now classed as Foreign Financial Institutions or FFIs, are required to adopt new account opening procedures in order to comply with FATCA rules.

The Bankers Association of Saint Lucia (BA) announced that local FFIs have for several months been preparing and training employees for the changes and Saint Lucia's finance sector is ready to comply by the deadline date. Individual institutions have also issued notifications and information about the new rules to customers.

The Bankers Association of Saint Lucia understands, however, that educating the public will be an ongoing exercise and encourages all financial institutions to ensure that employees and clients understand the new regulations and also encourages the public to comply and be co-operative during the process.

The Association noted that the ECCU member governments have adopted the IGA Model 1, which requires financial institutions to submit all FATCA-related information to their respective Inland Revenue Department for onward submission to the IRS. According to FATCA, financial institutions must provide all information on assets of US$50,000 or more held by US taxpayers, or by foreign entities in which US taxpayers hold substantial ownership interest.

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. 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 US banks.

The Bankers Association has reminded the public that FATCA does not replace the existing US 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 US person include: US citizenship; being a lawful resident of the US; and/or US corporations, US partnerships/US estates/US trusts where the US exercises primary supervision over administration or where one or more US persons has the authority to control all substantial decisions.

The Association noted that the impact of FATCA is far reaching and impacts any person, US 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 Saint Lucia reiterated the commitment of Saint Lucia's financial institutions to ensuring regional compliance with FATCA and called on the public to assist financial partners in that regard. The BA 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.
 
Reads: 1950





Click here to receive daily news headlines from Caribbean News Now!



Back...

Comments:

No comments on this topic yet. Be the first one to submit a comment.

Back...

Send us your comments!  

Send us your comments on this article. All fields are required.

For your contribution to reach us, you must (a) provide a valid e-mail address and (b) click on the validation link that will be sent to the e-mail address you provide.  If the address is not valid or you don't click on the validation link, we will never see it!

Your Name:

Your Email:

(Validation required)

Comments:
Enter Code



Please note that, if you are using an AT&T domain email address, e.g. att.net, bellsouth.net, sbcglobal.net, the verification email will likely not be delivered. This is outside of our control and the only remedy seems to be for readers to complain to AT&T





Disclaimer
User comments posted on this website are the sole views and opinions of the comment author and are not representative of Caribbean News Now or its staff. Caribbean News Now accepts no liability and will not be held accountable for user comments.
Caribbean News Now reserves the right to remove, edit or censor any comments. Any content that is considered unsuitable, unlawful or offensive, includes personal details, advertises or promotes products, services or websites or repeats previous comments will not be approved.
Before posting, please refer to our Terms of Use and Privacy Policy.



Other Headlines:



Regional Sports: