The Eastern Caribbean Central Bank (ECCB) has established a working group on the United States Foreign Account Tax Compliance Act (FATCA).
According to ECCB, the working group will ensure that financial institutions which operate within Eastern Caribbean Currency Union (ECCU) are prepared to comply with the requirements of 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 (FFIs) outside of the US.
FATCA requires the FFIs to report information to the US Internal Revenue Service (IRS) on assets held by US taxpayers, or by foreign entities in which US taxpayers hold substantial ownership interest.
The working group comprises representatives from the Attorneys General Chambers, Inland Revenue Departments, Single Regulatory Units/Financial Services Authorities, and Ministries of Finance of the ECCU member countries, and representatives from the financial services industry and the ECCB.
The working group is charged with making recommendations to the respective member governments on the appropriate approach for ECCU FATCA compliance, including the development of a harmonised legislative and regulatory compliance framework, and monitoring the compliance status of the respective territories and financial institutions.