The Ministry of Financial Services, in conjunction with the
Ministry of Finance and the Office of the Attorney General, is pleased to
advise that The Bahamas is well advanced in the process of finalizing its
compliance arrangements with the United States Foreign Accounts Tax Compliance
Act (FATCA). The Ministry will continue to take all necessary
measures to ensure that Bahamian entities are permitted to conduct business
without impediments in global markets.
The Ministry anticipates that a Model 1 (non-reciprocal)
Intergovernmental Agreement will be agreed with the United States well in
advance of the April 2014 deadline for the first listing of participating
foreign financial institutions (i.e. “the FFI list”). The Ministry
has devoted considerable resources to ensuring that Bahamian financial sector
participants and the Bahamian public are well educated about FATCA and
will continue to do so.
The Ministry urges all financial institutions to carefully
review the requirements of FATCA, including the due diligence procedures
and requirements outlined in the FATCA Regulations and Annex 1 of the
Inter-Governmental Agreement and to take the necessary measures to ensure that
systems are in place internally to identify accounts held or controlled by
United States persons.
The Ministry encourages all financial institutions to become
familiar with the US FATCA registration system and requirements and
highlights that the registration deadline for Model 1 Participating financial
institutions is December 2014. Notwithstanding this date, by
Bahamian statute and in conjunction with the regulators, compliance
expectations will be established within the first half of 2014.
The Ministry will continue its outreach, education and
consultation with industry as The Government of The Bahamas moves forward in
this FATCA project and particularly as FATCA specific
legislation and industry specific guidelines are released for public
We encourage all in the financial services industry to continue
to become educated on the requirements of FATCA to ensure the
readiness of their institutions.