Preparations continue for FATCA

Cayman is continuing preparations for the implementation of the US Foreign Accounts Compliance Act (FATCA). So far the island has signed two inter-governmental agreements (IGAs), and legislation is currently being drafted to meet the requirements of the new law.

Chief Compliance Officer at DMS Offshore Investment Services Don Ebanks says the island is on track to being FATCA-compliant.

“There’s been a lot of pressure on jurisdictions generally, for example Luxembourg hasn’t signed their IGA as of yet and we have, so that gives you an idea that even further significant jurisdictions are still working on these issues.

“But we understand from government that they will actually get the legislation in place by the time it’s actually required,” Mr Ebanks said.

Under FATA, financial institutions will be required to report to the US Internal Revenue Service (IRS) information aboutUScustomers’ accounts worth $50,000 or more.

FATCA takes effect on 1 July.

Credit: Cayman27