AMCHAM T&T ADVOCATES FOR PASSAGE OF FATCA LEGISLATION
The American Chamber of Commerce of T&T (AMCHAM T&T) strongly urges the Government and Opposition to work together to ensure the passage of the Tax Information Exchange Bill 2016 (commonly referred to as the FATCA legislation) by the deadline date of September 30th, 2016.
We are of the view that our country is on the brink of being demoted to the periphery of the global financial system largely due to inaction on the part of politicians on both sides of the political divide. This is a crisis manufactured by politics to the detriment of the national interest. The former Government had ample opportunity to pass this legislation during its tenure, and the current Government has also had more than a year to ensure that this important piece of legislation was properly vetted, reviewed and passed.
We are mindful that there has been limited, if any, consultation with stakeholders on the legislation which is currently before the House. However, AMCHAM T&T is of the view that there is still enough time for both the Lower and Upper Houses of Parliament to complete deliberations on the Bill and to ensure its passage before the 30th September 2016 deadline. The foregoing is critical since there has as yet been no indication that an extension of time is being contemplated by the U.S. Government.
Should this Bill not be passed by the deadline, the costs of participating in the international financial system can be impacted and ultimately, a possible loss of correspondent bank relationships could occur if this and other obligations are not met which could, in turn, lead to difficulties in conducting, for example, credit card transactions and wire transfers. This would mean that everything from buying goods or services online, to transferring money to pay university fees or purchase inputs for businesses would be affected. Potential shortages and consequential increases to the prices of goods and services already in scarce supply would also arise over time as a consequence of the deadline not being met.
AMCHAM T&T is mindful that once the Bill is passed, guidelines for compliance will be developed by the regulators of financial institutions, the Central Bank of Trinidad and Tobago and the Securities Exchange Commission of Trinidad and Tobago. To this end, we encourage stakeholder involvement in the early stages of the development of these guidelines.
We caution that once this piece of legislation is passed, other critical pieces of legislation require urgent attention to ensure that Trinidad and Tobago comply with anti-money laundering and counter-terrorism financing obligations. Failure to do so would continue to jeopardize our country’s links to the international banking system.
Several CARICOM countries, including Jamaica, Barbados and the Bahamas, have already passed their ‘FATCA’ legislation. It is our view that legislators on both sides of the aisle should put country first and work toward the passage of this legislation by the deadline. The consequence of inaction is not something that we can either afford or entertain.