FATCA Intergovernmental Agreement Update

Minister of Finance Bob Richards confirmed this week that under the Bermuda-UK FATCA Intergovernmental Agreement [IGA] model 2, Bermuda and the UK have agreed the inclusion of a Limited Capacity Exempt Beneficial Owner Category in Annex II of the IGA.

The effect of this amendment will mean that there will be no obligation for Bermuda financial institutions to report on the controlling persons of a not-for-profit, non-financial foreign entity that meet the required criteria under this category.

This will allow such not-for-profit entities to be treated the same way under UK FATCA as they are presently under US FATCA and US-Bermuda IGA Annex I VI B 4 j.

Minister Richards said that “this information will bring clarity and alignment to international business stakeholders in respect of the treatment of not-for-profit entities and thus enhance the attractiveness of Bermuda in international business and aid in strengthening Bermuda’s economy.”