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Barbados’ Republic Bank Limited Complies with FATCA Requirements

The United States Foreign Account Tax Compliance Act (FATCA) has become a global model for combating offshore tax evasion and promoting transparency. Enacted in 2010, FATCA requires US financial institutions to withhold a portion of payments made to foreign financial institutions (FFIs) that do not agree to identify and report information on US account holders.

Republic Bank’s Agreement with the IRS

Republic Bank Limited has entered into a special agreement with the US Internal Revenue Service (IRS), effective July 1, 2014. As part of this agreement, Republic Bank will:

  • Undertake certain identification and due diligence procedures for new customers starting July 1, 2014
  • Report annually to the IRS information on customers who are US persons or foreign entities with substantial US ownership, commencing March 31, 2015
  • Close accounts of certain customers who do not wish to cooperate with the new FATCA requirements

Compliance Obligations

Republic Bank is committed to meeting these obligations while continuing to provide its services to existing customers. The bank urges all customers to comply with the requests for information and encourages those seeking assistance in understanding the scope of these new reporting requirements to seek advice from an independent tax advisor.

Consequences of Non-Compliance

Failure to comply may result in the bank bringing to an end its banking relationship with non-compliant customers.

FATCA Requirements for FFIs

FFIs, including Barbados-based banks, will need to:

  • Register with the IRS and obtain an IRS-issued Global Intermediary Identification Number (GIIN)
  • Submit a valid and completed W-8BENE Tax Form as supporting documentary evidence that they are a participating FFI or either an exempt or deemed- or registered-compliant FFI under FATCA

FATCA Requirements for Individuals

Individuals who are US persons, including citizens and residents, will need to submit a valid and completed W-9 Tax Form. Those who are not US persons but have specific indicators may need to submit a valid and completed W-8BEN Tax Form as supporting documentary evidence. Entities that are neither FFIs nor US incorporated entities but have specific indicators or US substantial shareholding will also be required to submit a valid and completed W-8BENE Tax Form.

Seeking Assistance

Republic Bank is working diligently to ensure compliance with these new reporting requirements and advises all customers to seek assistance from an independent tax advisor if needed.