Banking - Caribbean

British Virgin Islands negotiating FATCA agreement with US

British Virgin Islands negotiating FATCA agreement with US

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The British Virgin Islands is in talks with the US government to establish an intergovernmental agreement over the Foreign Account Tax Compliance Act (FATCA), the islands' Premier Orlando Smith said in a statement.

FATCA was introduced by the US to ensure that information on accounts held by US citizens with foreign financial institutions - including ownership, balances and cash movements - is made available to the Inland Revenue Service.

"We have already commenced talks with the US Treasury and expect to continue to do so until a final agreement is reached," said Smith.

Mexico, and the Cayman Islands are among the Latin American countries to have already reached agreements with the US over FATCA.

Officials from the Bahamas and Bermuda have also expressed their intention to comply with the US tax authorities on the matter, according to news site Tax News.