BVI Signs FATCA IGA with United States

The Government of the British Virgin Islands and the United States signed a FATCA Intergovernmental Agreement ("IGA"). The IGA is a Model 1B (nonreciprocal) agreement, pursuant to which financial institutions and investment entities in the British Virgin Islands ("BVI") will provide information on their direct and indirect U.S. account holders to the BVI, which in turn will provide that information to the U.S. Internal Revenue Service.

The IGA was signed at the Department of Treasury in Washington, D.C. by Premier of the BVI, the Honorable Dr. D. Orlando Smith, OBE, and by Assistant Secretary of the Treasury (Tax Policy) Mark Mazur. Cadwalader attorneys Daniel J. Mulcahy, Mark P. Howe and Adam S. Lurie also were involved in advising and assisting BVI in its negotiation of and efforts to implement and comply with the IGA.

Premier Smith indicated that the next phase of the implementation of the IGA in the BVI would be the issuance of a draft of the Territory's Guidance Notes for industry comment. In addition, legislation will be enacted shortly enabling the implementation of the IGA and Guidance Notes. The text of the IGA is expected to be released soon.

See: BVI Press Release.See also: Cabinet FATCA Materials (for Cabinet subscribers only). For more information, please contact Daniel Mulcahy and Mark Howe.