Bahamas FATCA Deadline Imminent

The deadline for Bahamas-based financial institutions to submit reports under the US Foreign Account Tax Compliance Act is August 26, 2016.

In a reminder to financial institutions, the Central Bank said applicants must register to use the territory's tax information exchange portal. It is not possible to use registration details from last year as these records have been purged to ensure security.

The portal enables financial institutions to submit the information required to be reported under the US FATCA through the Central Bank of the Bahamas who will remit that information to the US Internal Revenue Service.

Financial institutions that do not comply with FATCA reporting requirements will be deemed "non-Participating Foreign Financial Institutions" and may face a 30 percent withholding tax on all US-source payments.