The Special FATCA Negotiating Team, under the Chairmanship of Elson Gaskin, Bank Secretary of the Central Bank of Barbados, has completed its review of the FATCA Inter-Governmental Agreement between the United States of America (USA) and Barbados, including the Annexes thereto.
In addition, these documents have been vetted by the Office of the Chief Parliamentary Counsel, which has responsibility for advising of their appropriateness to the Honorable Attorney General who will in turn certify their readiness for execution to the Cabinet of Barbados.
The Team submitted a detailed Report to the Minister responsible for International Business on May 2, 2014. In the interim, however, the Team has signaled to the USA that Barbados is ready to proceed to initial the Agreement once the approval of Cabinet is obtained.
During the negotiation process, the team made several enquiries of the USA along with suggested amendments but the USA, while acknowledging these suggestions, declined to make them, citing the need to have uniformity in their documentation.
In addition, detailed issues raised by the Special Negotiating Team received comprehensive responses from the USA which may be utilised to assist Barbados??? financial institutions should these matters arise in the coming months as they seek to ensure FATCA compliance.
The USA indicated on May 23, 2014 that it will confirm its readiness to Barbados by the week commencing May 26, 2014 and thereafter the Agreement will be finalised and initialed by both parties.
The Treasury Department of the USA has indicated that once Barbados initials the documents and Barbados consents, Barbados??? name will be placed on the published list of countries with which a FATCA IGA is deemed to be in place. The formal execution will take place at a subsequent date.
On February 3, 2014 the Minister with responsibility for International Business indicated that Barbados would be ready to execute the IGA by April 30.
This deadline was largely complied with. While some intervening time has been expended on the formalities of the execution process, it is expected that the same will be completed well in time for the June 30 deadline.