Bahamas Signs Model 1 FATCA IGA

On November 3, 2014, the Bahamian government and the United States signed an Intergovernmental Agreement ("IGA") under FATCA. The Model 1 form of the IGA requires financial institutions and investment entities resident in the Bahamas to report certain information with respect to accounts and interests in such investment entities that are held directly or indirectly by U.S. persons.

The United States and the Bahamas announced previously that they reached an "agreement in substance" that permitted Bahamian financial institutions to be treated as compliant with FATCA as of July 1, 2014, but the "in substance agreement" would have expired on December 31, 2014. The Bahamian government indicated that it intends to introduce implementing legislation when Parliament convenes on November 19, 2014, and will release guidance notes within the upcoming week.

See: IGA between the United States and the Bahamas.See also: FATCA Specialty Page (available to Cabinet subscribers only). For more information, please contact Dan Mulcahy or Mark Howe.