The Caribbean Association of Banks voices support for National Bankers Associations on FATCA

The Caribbean Association of Banks (CAB) fully supports Bankers Associations at the country level, in their efforts to have their respective governments finalize their FATCA (Foreign Account Tax Compliance Act) Inter- Governmental Agreements (IGAs) with the Government of the USA.

CAB remains concerned about the number of Caribbean countries which do not yet have IGAs in force and therefore renews the call[i] for Caribbean countries to enact the necessary legislation for the implementation of FATCA. Failure to do so, has far reaching implications for banks in terms of an increase in sovereign risk and its impact on their ability to conduct business.

It is important to note that, if a country does not have an IGA in force, the domestic Financial Institutions in that territory will have to establish an individual agreement with the US Government at significant cost, which may have to be passed on to their customers. Failure to comply with the Act, will result in a 30% withholding tax on any “payment of interest, dividends, rents, royalties, salaries, wages, annuities, licensing fees and other FDAP income[ii], gains and profits, if such payment is from sources within the United States. Additionally, any gross proceeds from the sale or disposition of U.S. property of a type that can produce interest or dividends and certain foreign pass-through payments”[iii] will be liable to the 30% tax withholding.

That being said, there are some countries who have the respective IGAs in force, as at 27th January, 2017[iv] for which they must be commended:

Bahamas                                        Cayman Islands                        St. Lucia

Barbados                                        Curacao                                    St. Vincent and the Grenadines

Bermuda                                         Jamaica                                    Turks and Caicos

British Virgin Islands                     St. Kitts and Nevis

The CAB strongly encourages the remaining Caribbean countries which are not listed above, to ensure that their IGAs are in force by their extended deadlines in order to avoid the negative consequences of non-compliance with FATCA.


[i] CAB Press Release:

[ii] FDAP Income:


[iv] FATCA List of Countries:

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The Caribbean Association of Banks, Inc. is the representative body and recognized voice for banks and other financial institutions in the Caribbean. We seek to influence policies and legislation which impact the sector by advocating on our members’ behalf and participating in the global network of similar institutions.

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