Targets
Two things are obvious from the preceding week’s presentation. The first is that both financial and non-financial institutions are targets of the FATCA law, and the other is that the new rules affect them in similar ways. Though they both must be ready and able to provide the information desired by the US Government, only those private non-financial entities in which US citizens or permanent residents are substantial owners have to respond. A substantial owner is one who owns 10 percent or more of the shares or value of the business. Sole proprietorships and small partnership entities know who their owners are and can deal with that issue without much effort. Larger enterprises with hundreds or thousands of owners will have to perform more due diligence. They will also have to modify their information systems to ensure that they can report all the information needed.
Risks
Yet, their work will not be as burdensome as those of the commercial banks. Be that as it may, risks remain for all types of private businesses. Substantial owners of sole proprietorships, small partnerships and even closed companies might believe that with full control over their information, they do not have to be above board about their ownership status. This could be a mistake since information about links to the US could reside in other organizations, inside and outside of Guyana, like the lending institutions, insurance companies and other financial houses with which they