FSC Warns of Potential Liability Under UK Bribery Act and US FATCA
29 July 2011
The Financial Supervision Commission (FSC) has advised FSC regulated businesses of possible liability under the UK Bribery Act 2010 (the Bribery Act) and the US Foreign Account Tax Compliance Act 2010 (FATCA). According to the FSC, “as the majority of the population of the Isle of Man are British Citizens, they could potentially be caught under the [Bribery Act] and commit offences under that Act”. Any UK-incorporated company operating in the Isle of Man and any other body incorporate or partnership, wherever incorporated or formed, including Isle of Man incorporated companies and partnerships operating in the UK, are also potentially covered by the Act.
According to the FSC, the FATCA was passed in March 2010 and will begin to be implemented in 2013. The FATCA requires foreign financial institutions (FFIs) to report certain information about accounts held by US taxpayers, or by foreign entities in which US taxpayers hold a substantial ownership interest, to the US Internal Revenue Service (IRS). FFIs will be required to enter into an agreement with the IRS by 30 June 2013 “to ensure that it will be identified as a participating FFI in sufficient time to allow withholding agents to refrain from withholding beginning on 1 January 2014″.
FSC’s media release (22 July 2011)
(Source: FSC; Legislation.gov.uk)