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Latest edition of IBFS newsletter focuses on FATCA
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IBFS Newsletter December 2012
The Central Bank of Barbados (CBB) today published the December issue of the IBFS Newsletter with a heavy focus on the Foreign Account Tax Compliance Act (FATCA).
Three articles on FATCA are featured in this edition. Prominent attorney-at-law, Dr. Trevor Carmichael, discusses the global events affecting Barbados' international financial services and the workings of the Act.
In a separate article, Government's Advisor on the international business sector, Bruce Zagaris, examines the challenges and opportunities that the new legislation will present.
In yet another contribution, the Bank's Legal Counsel, Sadie Dixon, updates us on Government’s response to FATCA and the activities of the Bank and the Invest Barbados-led joint working group to keep abreast of the provisions of the Act and to craft a proposed action plan for Government.
Under FATCA, U.S. taxpayers with specified foreign financial assets that exceed certain thresholds must report those assets to the IRS. Tax payers are required to attach this report to their federal income tax return.
In addition, FATCA will require foreign financial institutions to report directly to the IRS information about financial accounts held by U.S. taxpayers, or held by foreign entities in which U.S. taxpayers hold a substantial ownership interest.
Also featured in this the final newsletter for 2012 is an assessment by Executive Director of BIBA, Henderson Holmes, of the legislative reforms necessary in the international business sector and a commentary on the roles of the private and public sectors in developing the industry.
The CBB’s Deputy Director, Bank Supervision, Cheryl Greenidge contributed two articles: an interview with Deputy Director, Caribbean Action Task Force (CATF),
Dawn Spicer, on the functions of the Task Force, and in the second piece, Greenidge writes about the Financial Stability Board (FSB) and the March 2013 launch of the Legal Entity Identifier (LEI).
The establishment of the LEI reflects a decision that the G20 took in June 2012 to develop a single system for unique identification of parties to financial transactions, with a view to further reforming the financial services sector.
A synopsis of a conference on international business held for local attorneys is also available in this edition.
The IBFS newsletter provides up-to-date information on issues and activities that are pertinent to the international business and financial services sector.
December 28, 2012
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