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Local banks take step to comply with new US law
Local banks are now preparing to spend money to upgrade their systems so that they can comply with requirements being proposed by a new United States law.
It's the US Foreign Account Tax Compliance Act (Fatca), which is to be implemented next year.
It will require financial institutions across the world that work with US banks, to sign an agreement that will require them to identify, and report on certain categories of its customers.
<span style="font-weight: bold">It will apply to persons with balances above US fifty thousand dollars, and those with certain ties to the United States.</span>
Speaking on Beyond The Headlines on Friday, Attorney-at-law and Chief Compliance Officer for the Jamaica National Building Society Group, Tasha Manley, explained that the banks will now have to spend money to change certain systems and processes.
"What the Financial Institutions will be required to do is to change their existing processes ,<span style="font-weight: bold"> this act requires us to identify persons who are dual citizens, US citizens, persons born in the US green card holders and persons who have spent at least 183 days in the US </span>so it will impact our existing processes and technologies"
She added that foreign banks are also concerned about the full implications of the law.
"All Financial institutions worldwide are affected, even financial institutions in such places normally considered safe havens, such as Cayman, in Switzerland, Financial institutions in Switzerland are also concerned about FATCA" said Ms Manley.