{"id":445,"date":"2024-07-06T16:14:16","date_gmt":"2024-07-06T16:14:16","guid":{"rendered":"https:\/\/cedsto3.dreamhosters.com\/mbh\/implementation-of-fatca-and-crs-in-the-bahamas\/"},"modified":"2024-07-07T13:36:34","modified_gmt":"2024-07-07T13:36:34","slug":"implementation-of-fatca-and-crs-in-the-bahamas","status":"publish","type":"post","link":"https:\/\/cedsto3.dreamhosters.com\/mbh\/implementation-of-fatca-and-crs-in-the-bahamas\/","title":{"rendered":"Implementation of FATCA and CRS in The Bahamas"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_section-76fcdba7f378bcd724711bb4229931c1\">\n.avia-section.av-av_section-76fcdba7f378bcd724711bb4229931c1{\nbackground-color:#3d3d3d;\nbackground-image:url(https:\/\/cedsto3.dreamhosters.com\/mbh\/wp-content\/uploads\/2024\/07\/page-resource-bg.jpg);\nbackground-repeat:no-repeat;\nbackground-position:50% 0%;\nbackground-attachment:scroll;\n}\n<\/style>\n<div id='av_section_1'  class='avia-section av-av_section-76fcdba7f378bcd724711bb4229931c1 main_color avia-section-no-padding avia-no-border-styling  avia-builder-el-0  el_before_av_section  avia-builder-el-first  avia-full-stretch avia-bg-style-scroll av-minimum-height av-minimum-height-60 av-height-percent  container_wrap fullsize'  data-section-bg-repeat='stretch' data-av_minimum_height_pc='60' data-av_min_height_opt='percent'><div class='container av-section-cont-open' ><main  role=\"main\" itemprop=\"mainContentOfPage\"  class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-445'><div class='entry-content-wrapper clearfix'>\n<div class='flex_column_table av-av_three_fifth-b1ac823ad80d104edd5272d6a6b85521 sc-av_three_fifth av-equal-height-column-flextable'><div  class='flex_column av-av_three_fifth-b1ac823ad80d104edd5272d6a6b85521 av_three_fifth  avia-builder-el-1  el_before_av_two_fifth  avia-builder-el-first  first flex_column_table_cell av-equal-height-column av-align-bottom  '     ><style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-lybljt2d-65d9e28e39c53e35b3c7de83145188a4\">\n#top .av-special-heading.av-lybljt2d-65d9e28e39c53e35b3c7de83145188a4{\npadding-bottom:10px;\ncolor:#ffffff;\nfont-size:42px;\n}\nbody .av-special-heading.av-lybljt2d-65d9e28e39c53e35b3c7de83145188a4 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n#top #wrap_all .av-special-heading.av-lybljt2d-65d9e28e39c53e35b3c7de83145188a4 .av-special-heading-tag{\nfont-size:42px;\n}\n.av-special-heading.av-lybljt2d-65d9e28e39c53e35b3c7de83145188a4 .special-heading-inner-border{\nborder-color:#ffffff;\n}\n.av-special-heading.av-lybljt2d-65d9e28e39c53e35b3c7de83145188a4 .av-subheading{\nfont-size:15px;\n}\n\n@media only screen and (min-width: 480px) and (max-width: 767px){ \n#top #wrap_all .av-special-heading.av-lybljt2d-65d9e28e39c53e35b3c7de83145188a4 .av-special-heading-tag{\nfont-size:0.8em;\n}\n}\n\n@media only screen and (max-width: 479px){ \n#top #wrap_all .av-special-heading.av-lybljt2d-65d9e28e39c53e35b3c7de83145188a4 .av-special-heading-tag{\nfont-size:0.8em;\n}\n}\n<\/style>\n<div  class='av-special-heading av-lybljt2d-65d9e28e39c53e35b3c7de83145188a4 av-special-heading-h1 custom-color-heading blockquote modern-quote  avia-builder-el-2  avia-builder-el-no-sibling  av-inherit-size'><h1 class='av-special-heading-tag'  itemprop=\"headline\"  >Implementation of FATCA and CRS in The Bahamas<\/h1><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div><\/div><div class='av-flex-placeholder'><\/div><div  class='flex_column av-av_two_fifth-ae2cd6b1f49e83f5dbcce51aa112b1d0 av_two_fifth  avia-builder-el-3  el_after_av_three_fifth  avia-builder-el-last  flex_column_table_cell av-equal-height-column av-align-bottom  '     ><\/div><\/div><!--close column table wrapper. Autoclose: 1 --><\/div><\/div><\/main><!-- close content main element --><\/div><\/div><div id='av_section_2'  class='avia-section av-av_section-7af9a1a620ce4f39c9b9e05e20762bd9 main_color avia-section-default avia-no-border-styling  avia-builder-el-4  el_after_av_section  el_before_av_section  avia-bg-style-scroll container_wrap fullsize'  ><div class='container av-section-cont-open' ><div class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-445'><div class='entry-content-wrapper clearfix'>\n<div class='flex_column_table av-av_four_fifth-8a58639afa400a410e48c8abf84368e2 sc-av_four_fifth av-equal-height-column-flextable'>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_four_fifth-8a58639afa400a410e48c8abf84368e2\">\n.flex_column.av-av_four_fifth-8a58639afa400a410e48c8abf84368e2{\nbackground-color:#ffffff;\n}\n<\/style>\n<div  class='flex_column av-av_four_fifth-8a58639afa400a410e48c8abf84368e2 av_four_fifth  avia-builder-el-5  el_before_av_three_fourth  avia-builder-el-first  first flex_column_table_cell av-equal-height-column av-align-bottom  '     ><p><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_hr-3a876428eececa9d35452247ddb053af\">\n#top .hr.hr-invisible.av-av_hr-3a876428eececa9d35452247ddb053af{\nheight:50px;\n}\n<\/style>\n<div  class='hr av-av_hr-3a876428eececa9d35452247ddb053af hr-invisible  avia-builder-el-7  el_after_av_codeblock  avia-builder-el-last '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div><\/p><\/div><\/div><!--close column table wrapper. Autoclose: 1 --><div class='flex_column_table av-av_three_fourth-8a58639afa400a410e48c8abf84368e2 sc-av_three_fourth av-equal-height-column-flextable'>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_three_fourth-8a58639afa400a410e48c8abf84368e2\">\n.flex_column.av-av_three_fourth-8a58639afa400a410e48c8abf84368e2{\nbackground-color:#ffffff;\n}\n<\/style>\n<div  class='flex_column av-av_three_fourth-8a58639afa400a410e48c8abf84368e2 av_three_fourth  avia-builder-el-8  el_after_av_four_fifth  el_before_av_one_fourth  first flex_column_table_cell av-equal-height-column av-align-bottom  '     ><section  class='av_textblock_section av-av_textblock-b1dfba9bd0fa17a76984708495577984 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p>By Beatrice Miranda &amp; Kevin Moree<\/p>\n<p>The Hiring Incentives to Restore Employment Act of 2010 added chapter 4 of subtitle A, comprised of sections 1471 \u2013 1474, to the Internal Revenue Code of the United States. Chapter 4 is known as the Foreign Account Tax Compliance Act (\u201cFATCA\u201d), which addresses non-compliance by U.S. taxpayers who are holding foreign financial accounts or assets. FATCA also requires certain foreign financial institutions (\u201cFFIs\u201d) to report to the IRS information about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold certain ownership interests.<\/p>\n<p>In order to facilitate the provision of information on financial accounts held by U.S. taxpayers abroad, the U.S. Treasury Department collaborated with foreign governments to develop model intergovernmental agreements, which are intended to provide an effective and efficient means for complying with FATCA, while reducing the burden which FATCA compliance imposes on FFIs.<\/p>\n<p>The Agreement between the Government of the Commonwealth of The Bahamas and the Government of the United States of America to Implement FATCA was entered into in November 2014, and The Bahamas and the United States of America Foreign Account Tax Compliance Agreement Act, 2015 (the \u201cFATCA Act\u201d) came into force the following year. Under that Act, FFIs report certain information on U.S. reportable accounts maintained by them to the Competent Authority in The Bahamas, which automatically provides such information to the Competent Authority in the United States.<\/p>\n<p>The OECD\u2019s Common Standard on Reporting and Due Diligence for Financial Account Information (\u201cCRS\u201d) was implemented in The Bahamas by the Automatic Exchange of Financial Account Information Act, 2016 (the \u201cCRS Act\u201d) and the Automatic Exchange of Financial Account Information Regulations, 2017 (the \u201cCRS Regulations\u201d). Both the CRS Act and the CRS Regulations were subsequently amended. Under the CRS, participating jurisdictions obtain specified financial account information from their financial institutions and automatically exchange such information with reportable jurisdictions on an annual basis.<\/p>\n<p>While the FATCA Act only applies to the automatic provision of information by The Bahamas to the United States, under the CRS Act and the CRS Regulations The Bahamas automatically provide information to numerous jurisdictions around the world. Under both regimes the information is provided on a non-reciprocal basis, i.e. The Bahamas do not receive any information from the United States under FATCA or from any of the participating jurisdictions under the CRS.<\/p>\n<p>McKinney, Bancroft &amp; Hughes provides advice and assists its clients in complying with their due diligence and yearly reporting obligations under both FATCA and CRS.<\/p>\n<p>Beatrice Miranda is a partner in the firm and a member of the following practice groups: Tax &amp; Trade, Corporate &amp; Commercial Transactions, Private Client, Financial Services &amp; Regulations as well as Litigation and Dispute Resolution. Beatrice is qualified to practice law in Switzerland, England and The Bahamas.<\/p>\n<p><a href=\"mailto:bmiranda@mckinney.com.bs\">bmiranda@mckinney.com.bs<\/a><\/p>\n<p>Kevin Moree is a partner in the firm and a member of the following practice groups: Tax &amp; trade, Financial Services &amp; Regulations as well as Litigation and Dispute Resolution. Kevin is a Director of the Bahamas Financial Services Board and Co-Chair of the Bahamas Financial Services Board Tax Working Group.<\/p>\n<p><a href=\"mailto:kacmoree@mckinney.com.bs\">kacmoree@mckinney.com.bs<\/a><\/p>\n<\/div><\/section><\/div><div class='av-flex-placeholder'><\/div>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_one_fourth-b9b2a0bc9aa2512cefc5e0e7e7441cc9\">\n.flex_column.av-av_one_fourth-b9b2a0bc9aa2512cefc5e0e7e7441cc9{\nbackground-color:#ffffff;\n}\n<\/style>\n<div  class='flex_column av-av_one_fourth-b9b2a0bc9aa2512cefc5e0e7e7441cc9 av_one_fourth  avia-builder-el-10  el_after_av_three_fourth  avia-builder-el-last  flex_column_table_cell av-equal-height-column av-align-bottom  '     ><\/div><\/div><!--close column table wrapper. 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