The British Virgin Islands and Cayman have entered into a Foreign Account Tax Compliance Act (FATCA) agreement with the US.
BVI and Cayman Islands are due to submit reports to the US Internal Revenue Services (US IRS) as a part of the agreement.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Both the countires have finalised a Model I intergovernmental agreement (IGA) with the US in response to FATCA.
Under the Model I IGA regime, FFIs located in the BVI and Cayman Islands will be required to report FATCA information to the BVI or Cayman Islands Government which in turn will report that information to the US IRS. On the other hand, Model II essentially requires FFIs to report directly to the US IRS.
The BVI and Cayman Islands governments also intend to conclude negotiations to enter a similar arrangement for automatic provision of information to the UK. Guernsey, Jersey, and the Isle of Man have also entered into such arrangements with the UK.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
