2 July 2014

BVI moves towards FATCA compliance

The BVI government has signed a Model 1B (non-reciprocal) intergovernmental agreement (IGA) with the US as it looks to comply with Foreign Account Tax Compliance Act (FATCA).

In order to comply with FATCA the BVI government is releasing draft “FATCA guidance notes to help BVI financial institutions interpret their responsibilities under FATCA (and UK FATCA)”.

The government has also entered into a public consultation process and enabled legislator changes that will incorporate FATCA requirements into BVI law.

BVI institutions are expected to be compliant from July 1 2014 and the government has asked them to collect necessary information on US and UK account holders.