(Trinidad Guardian) Bankers are frustrated over the long awaited passage and implementation of legislation for T&T to become FATCA (Foreign Account Tax Compliance Act) compliant.
The implications of non-compliance can result in T&T being unable to trade internationally. It can also result in a 30 per cent withholding tax implemented on US dollars flowing into the banking system in T&T from the US, bankers said on Thursday.
“You may have US correspondent banks who may say since you are not FATCA compliant, I am not going to have a correspondent-banking relationship with you because you are not compliant with the dictates of the US government. It could impact correspondent banking relationships,” said Daryl White, president of the Banking Association of T&T.
The leaders of Scotiabank, RBC, JMMB bank and Republic Bank Ltd on Thursday said they have been lobbying for more than two years for the legislation to be put in place but have not received any response.
The FATCA is a US-based law which came into effect in 2010. It was put in place to ensure that US citizens, including those living outside that country, file yearly tax returns. Extensions were given to become compliant and T&T must have everything in place to conform to the law by September 30, according to the banking leaders.
Frustrated after speaking to officials spanning two political administrations, the bankers spoke at a news conference yesterday, at RBC’s St Clair location. The news conference comes at a time when there are continuous complaints about the supply of US currency, and with the country experiencing an economic downturn.
Stating that T&T was at a critical stage when it comes to becoming compliant with FATCA, White said presently banks in T&T have to adhere to confidentiality clauses which means they can’t disclose any client information. If FACTA legislation is in place however, then information can be released to law enforcement entities requesting information.
