Bridgetown, Barbados — On Monday, the government of St Kitts and Nevis signed the agreement with the government of the United States to implement the US Foreign Account Tax Compliance Act (FATCA).
Enacted by the US Congress in 2010, FATCA targets non-compliance by US taxpayers using foreign accounts. FATCA requires foreign financial institutions to report to the Internal Revenue Service information about financial accounts held by US taxpayers, or by foreign entities in which US taxpayers hold a substantial ownership interest.
This kind of information exchange is a top priority for the United States as access to information from international financial institutions is critically important to the full and fair enforcement of US laws.
US ambassador to Barbados, the Eastern Caribbean, and the Organization of Eastern Caribbean States (OECS), Larry Palmer, commented, “Every year, tax evasion deprives governments of all sizes of much-needed resources to fund public services and investments. The United States welcomes St Kitts and Nevis’ commitment to enhancing global financial transparency by improving international tax compliance. Today’s signing marks a significant development in our nations’ collaborative efforts to combat offshore tax evasion- an objective that mutually benefits our two countries. FATCA is yet one more example of the deep and substantial ways in which the economies of St. Kitts and Nevis and the United States are linked.”