Above: Bermuda

By the Caribbean Journal staff

The governments of Bermuda and the United States have signed an agreement on the US’ Foreign Account Compliance Act Regulations.

The deal, which is a model two intergovernmental agreement, was signed by US Consul General in Bermuda Robert Settje and Bermuda Finance Minister Bob Richards.

FATCA is a reporting system for foreign financial institutions to report to the United States Treasury on the financial accounts of US citizens.

“This historic tax agreement builds upon a rich history of cooperation and friendship Bermuda has had with the United States of America from the beginning,” Richards said. “Our signing today of the US FATCA IGA Model 2 emphasizes Bermuda’s commitment to international cooperation in tax matters to fight against cross boarder abuse of tax laws.”

Another British Overseas Territory, the Cayman Islands, signed a similar agreement with the United States at the end of November.