Local banks appear to have been slow to respond to a new United States tax compliance law which will require them to provide the US Internal Revenue Service (IRS) with financial information on US citizens possessing local bank accounts containing amounts exceeding US50,OOO (G$100 million) or foreign entities in which U.S. taxpayers hold a substantial ownership interest.
The US Foreign Account Tax Compliance Act (FACTA) will effectively require local commercial banks to provide the IRS with what in some cases is sensitive financial information on Guyanese-born holders of US Green Cards and passports who have accounts with local commercial banks. The Act requires financial institutions around the world to state whether their customers are “US persons”. Critics say that the definition of the term “US person” is very broad and can encompass people who have a green card or even a US mailing address, according to a report in the Jamaica Observer.
The new US law applies to banks, building societies, credit unions, securities establishments and insurers and contains provisions for