Financial Crime World

Federation of St. Kitts and Nevis Implements FATCA to Enhance Financial Transparency

===========================================================

The Government of the Federation of St. Kitts and Nevis has implemented the Foreign Account Tax Compliance Act (FATCA) through an Intergovernmental Agreement (IGA) with the United States, aimed at promoting financial transparency and cooperation.

Key Features of the FATCA Implementation

Designated Competent Authority

  • The Financial Secretary has been designated as the Competent Authority, with specific duties delegated to the Comptroller of Inland Revenue Department.

Registration and Reporting Requirements

  • Financial Institutions (FFIs) must register with the IRS and be assigned a Global Intermediary Identification Number (GIIN).
  • FFIs are required to report information on assets held by US taxpayers or foreign entities in which US taxpayers hold substantial ownership interest (over 10%) to the Competent Authority, who will then transmit it to the IRS.
  • Pre-existing Entity accounts with balances exceeding $250,000.00 are required to be reviewed for potential US account holders.

Progress Update

Milestones

  • Signed IGA on August 31st, 2015
  • Passed legislation to implement FATCA in September 2015
  • Acquired software to facilitate data receipt and transmission for FATCA purposes
  • Trained staff from the Inland Revenue Department on FATCA-related matters

Registration and Compliance

FFIs Registration

  • FFIs must register on the IRS website before reporting commences.
  • The list of registered FFIs, including those from St. Kitts and Nevis, can be found on the IRS website.

Responsible Officer

  • The Responsible Officer is appointed to ensure participating foreign financial institutions meet the requirements of the agreement.
  • This officer will review policies and procedures, report material errors, and prepare certification within six months of every certification period.

Frequently Asked Questions

Contact Information

For more information on FATCA implementation in St. Kitts and Nevis, please visit our website or contact our office for further assistance.

By implementing FATCA, the Government of St. Kitts and Nevis is demonstrating its commitment to financial transparency and cooperation with international partners, strengthening economic ties between the two countries while promoting compliance with tax regulations.