International Financial Law Prof Blog

Editor: William Byrnes
Texas A&M University
School of Law

Wednesday, August 26, 2015

Is Bahamas FATCA compliant? OECD "Oui", EU "We Don't Care".

The Bahamas Weekly reports that the OECD has found Bahamas "largely compliant" with the Oecdinformation due diligence, collection, and exchange standards necessary to implement effectively the U.S.' FATCA regime, and flush out U.S. non compliant account holders of Bahamian financial institutions.  The Bahamas is also able to comply with the automatic exchange of information system required by the OECD Common Reporting Standards (CRS, a.k.a. GATCA).

The EU Commission on the other hand, and several EU member states, include Bahamas as a black listed country, which may require heightened compliance diligence or loss of tax benefits, like deductions, for intra group transactions involving Bahamas.  The EU has not yet enacted sanctions against the countries, like Bahamas, that it has included on its blacklist, which the EU established based amalgamating its member states blacklists.  The EU Commission, in its communique, stated that its blacklist "can be used to screen non-cooperative tax jurisdictions and develop a common EU strategy to deal with them."  

See my previous post EU Commission Publishes Black List of Tax Havens, Demands EU Tax Harmonization.

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