Preparations for FATCA reporting progressing
Monique Grange, Assistant News Editor – Radio
President of the Jamaica Bankers’ Association (JBA) Bruce Bowen says financial institutions are progressing with system changes aimed at accommodating the Foreign Account Tax Compliance Act (FATCA).
FATCA, which was passed in 2010, requires financial institutions to provide detailed information on US persons to the Internal Revenue Service (IRS).
A US person includes anyone born in the US or anyone who has a US address, a green card or anyone who visits the USA for at least two months each year.
Bowen says bankers are now carrying out the necessary system changes and procedures as well as the training of staff to assist with the implementation of FATCA.
He notes that the process has proven very costly for bankers as the modifications to their systems require new software among other technological changes.
Bowen says the Cabinet is to indicate next week which model will be selected for the initial stages of the reporting process in January.
He says the Bankers’ Association favours a system in which a local agency will be set up to report to the IRS.
While noting that the establishment of a local reporting entity is likely to present a challenge, Bowen says he’s hoping everything will be in place for the January start-up date.
The JBA is today hosting a seminar on the FATCA Implementation at the Terra Nova All Suites Hotel in Kingston.
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