Ministry of Finance Enlists EY and Convey to
Develop and Deploy FATCA Model
Nassau, Bahamas - The
Government of the Bahamas through the Ministry of Finance announced today that it has moved
to a new stage in the development and rollout of its Foreign Account Tax
Compliance Act (FATCA) Model 1 Intergovernmental Agreement (IGA). After a highly
competitive bidding process, The Government of the Bahamas has awarded its
FATCA project to EY.
In partnership
with EY and Convey, a leading tax software provider, the Ministry of Finance
will design and deploy the Bahamas FATCA solution, which will include a secure
FATCA reporting system, the establishment of the Bahamas Competent Authority
and a number of other elements to effectively manage compliance with FATCA
Model 1 IGA requirements.
FATCA is a U.S.
tax law that will take effect on
30 September, 2015, requiring foreign
financial institutions to report account information about their U.S. clients
to the U.S. Internal Revenue Service (IRS). The Bahamas Ministry of Financial
Services has been instrumental in leading the IGA initiative and preparation
for the FATCA legislation. Together with the Office of the Attorney General,
they will continue to be key stakeholders in the process going forward.
“In collaboration
with EY and Convey, we are racing toward the finish line to successfully meet
the September 2015 FATCA submission deadline,” said the Hon. Michael Halkitis,
the Minister of State for Finance. “We are confident that by leveraging EY’s
deep FATCA expertise and Convey’s technical capabilities, we will have all of
the key elements in place to set up the Competent Authorities Operating Model
and implement the Model 1 IGA by this fall.”
“We are excited to
work with The Government of the Bahamas, the Ministry of Finance, Convey and
other key stakeholders on this important initiative,” said Michele Thompson,
Country Managing Partner, EY Bahamas. “Across EY, we have a wealth of global
expertise in FATCA and have managed some of the largest FATCA engagements in
the world. As a firm, we’re leading the market, and we look forward to
leveraging our experience to create a strong platform for implementation of
these changes in the Bahamas.”
Convey’s Taxport
system is a proven reporting platform that securely processes more than 1
billion 1099 reportable transactions on behalf of clients and certifies to the
ISO 27001:2005 Information Security Management Standard to ensure that data
security, availability, and confidentiality requirements are met.
As a Model 1 IGA,
the Government of the Bahamas has entered into an agreement with the United
States whereby the Competent Authority/Ministry of Finance will be responsible for collecting required data from
impacted financial institutions and will be obliged to report that data to
the U.S. IRS annually.
All Bahamas-based
Financial Institutions (FIs) must comply with FATCA. The Government has drafted
legislation, and a formal consultation period will now ensue, with a final bill
to be submitted to Parliament prior to
4 April, 2015. The Ministry of Finance
and the project team have also engaged a representative Financial Institution
Advisory Working Group to ensure that the views of the financial services
industry are incorporated into the Bahamas FATCA solution.
Bahamas FIs have
been receiving information since 2013 on FATCA requirements and preparing their
data accordingly. The Government has also established communication forums and
e-mail communications to enhance the flow of information between the Competent
Authority and FIs. The Ministry of Finance will be communicating timelines and
additional details to FIs shortly. Additional communications from EY will also
be forthcoming.
“In keeping with our long history of
entrepreneurial activity and economic innovation, as well as our tradition of
political and legislative stability, we are proud to be leading the way in
FATCA compliance, in collaboration with EY and Convey,” added Senator Hope
Strachan, the Minister for Financial Services.