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Compliance Regulations for Financial Institutions in Trinidad and Tobago: What You Need to Know About FATCA

Financial institutions in Trinidad and Tobago are now required to comply with the Foreign Account Tax Compliance Act (FATCA), a US law aimed at combating offshore tax evasion and promoting transparency. Here’s what you need to know about FATCA compliance regulations:

Effective Date and Reporting Requirements

Republic Bank began reporting information on US account holders to the Board of Inland Revenue as part of its obligations under the Model 1 Inter Governmental Agreement (IGA) signed with the US government in August 2016, effective September 30, 2017.

FATCA Regulations

Under FATCA regulations, financial institutions must:

  • Report annually to the Board of Inland Revenue on customers who are considered US persons, entities, or those with substantial US ownership.
  • Identify and report accounts held by non-compliant customers deemed “Recalcitrant”.

Definition of Foreign Financial Institutions (FFIs)

A foreign financial institution (FFI) is defined as any entity that:

  • Accepts deposits
  • Holds assets for others
  • Engages in securities trading

This includes banks, broker-dealers, asset managers, insurance companies, trust companies, credit unions, and cooperatives.

Definition of US Persons and Entities

For FATCA purposes, a US person is considered anyone who:

  • Is a citizen or resident of the United States
  • Holds a green card

A US entity is defined as any partnership, corporation, estate, or trust created under US law, or a non-US incorporated entity with shareholding of 10% or more held by a US person.

Customer Obligations

To comply with FATCA regulations, customers are required to:

  • Complete the “Declaration of US Status” form
  • Inform Republic Bank of any changes relating to their US status

The completed form can be submitted to any branch of Republic Bank.

Consequences of Non-Compliance

Failure to comply with FATCA regulations may result in institutions being required to report non-compliant customers as “Recalcitrant” to the United States Inland Revenue Service via the Board of Inland Revenue.

Additional Resources

For further information on FATCA, please visit the IRS FATCA page at www.irs.gov/FATCA or contact Republic Bank’s customer care team at customercare@rfhl.com.