Home' Trinidad and Tobago Guardian : August 13th 2014 Contents A21
Wednesday, August 13, 2014 www.guardian.co.tt Guardian
CASTRIES---The Bankers Association of
Saint Lucia (BASL) says it is seeking pub-
lic support as it moves to adhere to the
new reporting requirements for United
States clients which form part of the For-
eign Account Tax Compliance Act (Fatca).
BASL said that the legislation is intended
to increase transparency for the Internal
Revenue Service (IRS) with respect to US
persons that may be investing and earning
income through non-US institutions.
BASL said that it is committed to having
financial institutions operating here ensure
regional compliance with Fatca and was
calling "on the public to assist financial
partners in that regard".
The banking group said that as of July
1 this year, financial institutions here and
the rest of the Eastern Caribbean Currency
Union (ECCU) now classed as Foreign
Financial Institutions (FFIs), were required
to adopt new account opening procedures
in order to comply with Fatca rules.
"The Bankers Association of Saint Lucia
announced that local FFIs have for several
months been preparing and training
employees for the changes and St Lucia's
finance sector is ready to comply by the
deadline date. Individual institutions have
also issued notifications and information
about the new rules to customers.
"The BASL understands, however, that
educating the public will be an ongoing
exercise and encourages all financial insti-
tutions to ensure that employees and
clients understand the new regulations
and also encourages the public to comply
and be co-operative during the process."
According to Fatca, financial institutions
must provide all information on assets of
US$50,000 or more held by US taxpayers,
or by foreign entities in which US taxpayers
BASSETERRE---The Organisation of Eastern
Caribbean States (OECS) exported goods and services
totaling US$8.4 million to the United States in June,
according to figures released by the US Census Bureau.
The figures showed that St Kitts-Nevis led the way
among the nine-member sub-regional grouping with
exports totaling US$4.7 million, compared to US$4.2
million for the corresponding period last year.
St Lucia was the only other OECS country to surpass
the $1 million mark in exports, with revenue of US$1.3
million as against US$1.2 million in 2013.
St Kitts-Nevis is also leading the way in exports to
the United States during the first six months of the
year, with revenue pegged at US$29.9 million compared
to US$27.4 million last year.
Most of the OECS countries registered slight increases
in export revenue with the US Census Bureau indicating
that St Lucia receiving US$11 million compared with
US$7.9 million last year. Grenada was the enxt OECS
countries with improved exports to the United states,
registering a figure of US$6.8 million as against US$5.9
million for the corresponding period last year. St Kitts
and Nevis exports mainly electrical and industrial
equipment to the US. (CMC)
hold substantial ownership interest.
BASL said that failure of an FFI to submit infor-
mation could result in a 30 per cent withholding
tax levied on with holdable payments and may
result in the potential loss of critical correspondent
banking relationships and "this would affect cus-
tomers' ability to transact with the USA, our main
The BASL says the Fatca does not replace the
existing US tax withholding and reporting regimes,
adding it does, however, add additional requirements
and complexity to the existing regimes.
"The Association notes that the impact of Fatca
is far reaching and impacts any person, US or for-
eign, to the extent that such person is involved in
making or receiving payments that fall within the
scope of Fatca," BASL said. (CMC)
Bankers want support for Fatca
Slight increase in
OECS exports to US
on G'da debt relief
ST GEORGES---The Grenada government says it
remains optimistic that an amicable solution will
be found as it seeks to honour its debt with national
and international creditors in the wake of a recent
ruling by a United States court instructing Argentina
to meet its financial obligations to its creditors.
There have been suggestions that the decision by
Argentina to default on its payment could also have
an impact on Grenada, since both countries have the
In 2013, Grenada defaulted on its payment to its
international creditors, resulting in a sharp rebuke
and demands for payment.
Prime Minister Dr Keith Mitchell said as far as the
debt is concerned, the more debt relief the island is
able to attain, the better for the future development
of the country. "We are hopeful we will work things
out with every single debtor," he said, noting that
the court ruling "would not have the damaging effect
(on Grenada) as the Argentina situation would have
had on Argentina itself."
Grenada's foreign debt is estimated at US$679
million, 83.7 per cent of its GDP, and Prime Minister
Mitchell said his administration, which is imple-
menting a "home-grown" structural adjustment pro-
gramme with the support of the International Mon-
etary Fund (IMF), is also negotiating debt relief and
forgiveness with local and international creditors.
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