Bahamas Ministry of Finance Hosts Regional Conference on FATCA

The Bahamas Ministry of Finance hosted a two-day workshop on FATCA in Nassau on April 9 and 10, which representatives from over 10 countries throughout the Caribbean and Central America attended. Danielle Rolfes, International Tax Counsel at the U.S. Treasury Department, Michael Danilack, Deputy Commissioner (International) of the U.S. Internal Revenue Service, and several other Treasury and IRS officials also attended the conference and met in bilateral discussions with various countries at the conference.

In his opening remarks at the Conference, L. Ryan Pinder, Bahamas Minister of Financial Services, called FATCA perhaps the "most significant international matter facing international financial services industry today," and expressed concern that the mood of private industry in the region has been of intimidation and a sense of being overwhelmed. "That is why it is so important to have the input and explanation from the US Treasury representatives and IRS representatives." Pinder observed that countries within the region, whether due to their individual size, the sophistication of the financial services industry or both, have limited capacity in tax, especially U.S. tax. He noted that, in the Bahamas, which has a long-standing history as a financial center, one can count the local tax experts on one hand. Pinder also noted that the cost of compliance with FATCA, both to the Governments and the private sector, is a significant cause of concern throughout the region, with many not understanding the scope of what may be required, including the cost of internal preparation for FATCA and costs related to educational needs. Dealing with FATCA is a "dangerous situation" for small countries in the region, and Pinder called on countries in the region to address these issues collectively. "[I]n financial services we each may have national interests, but there is a commonality to have a regional interest as well."

See: Minister Pinder's Remarks.