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Republic Bank (Barbados) Limited Complies with FATCA Regulations
At Republic Bank (Barbados) Limited, we are committed to ensuring the highest degree of confidentiality and security when transferring data to the Barbados Revenue Authority (BRA) and subsequently to the Internal Revenue Service (IRS). As part of our compliance with Foreign Account Tax Compliance Act (FATCA), we will adhere to strict standards to protect customer privacy and service excellence.
What is FATCA?
FATCA is a US law aimed at combating tax evasion by requiring foreign financial institutions (FFIs) to report information about financial accounts held by US persons or foreign entities with substantial US ownership. The IRS has designed a schema for FFIs, including all banks in Barbados, to manage the transfer of data with confidentiality and security.
Specified Foreign Financial Assets
The IRS is interested in the following types of foreign financial assets:
- Financial (deposit and custodial) accounts held at non-US financial institutions
- Non-US stock or securities not held in a financial account
- Non-US partnership interests
- Non-US mutual funds
- Non-US-issued life insurance or annuity contract with a cash value
- Non-US hedge funds and private equity funds
FATCA vs. Existing US Tax Withholding and Reporting Regimes
FATCA does not replace existing US tax withholding and reporting regimes but adds additional requirements to the existing regimes.
Impact on US Green Card Holders
As a US Green Card holder, you are considered a US taxpayer and are required to declare your financial information directly to the IRS by filing Form 8938 (Statement of Specified Foreign Financial Assets) and Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts). FATCA is an additional method used by the US Government to ensure that financial information is collected and not solely the responsibility of the account holder, but also with the bank.
Joint Accounts
If you have a joint account with a non-US person or entity, your account may be subject to FATCA reporting if the non-US person or entity has a substantial US ownership interest.
Do You Have a Choice in the Matter?
No, the Intergovernmental Agreement (IGA) signed by the Barbados Government and the US Treasury makes it law in Barbados for all FFIs, including banks, to collect and report information about financial accounts held by US persons or foreign entities with substantial US ownership. Failure to comply may result in consequences.
Cooperation and Seeking Professional Advice
We urge you to cooperate with our FATCA reporting requirements. If you need assistance in understanding the scope of these new reporting requirements and the consequences of non-compliance, we encourage you to seek advice from an independent tax advisor.
For any questions or concerns regarding our FATCA requirements, please contact our Customer Contact Centre at 227-2700 or email us at info@republicbarbados.com.
Visit the IRS FATCA page at www.irs.gov/FATCA for updates and further information on FATCA.
Disclaimer
This publication contains summary information and is not intended as general guidance or a substitute for detailed research, advice, or professional judgment. Republic Bank (Barbados) Limited, its staff, officers, directors, subsidiaries, and affiliates cannot accept responsibility for loss occasioned to any person acting or refraining from action as a result of this publication. On specific matters, reference should be made to the appropriate advisor.