According to a statement released today by the States of Jersey, the agreements will follow the model intergovernmental agreements published by the US on 26 July 2012 and will be similar “in form” to the agreement between the US and the UK on 12 September.
Jersey said the decision to enter into the agreements “follows consultation with industry representatives, who have given their support for the proposed course of action” and is after discussions between the three Crown Dependencies and the US.
Formal negotiations are now due to take place and it is hoped that the intergovernmental agreements will be signed “rapidly”, according to Jersey. Once signed, the agreements will need to be ratified by each of the Island’s parliaments and will be implemented through the domestic legislative procedures in each jurisdiction.
Jersey’s chief minister, Senator Ian Gorst, said: “Implementing FATCA is necessary for our finance industry to remain competitive and doing so through an intergovernmental agreement is considered to be the best course to adopt. It is our intention to negotiate this with the US Government, in partnership with Guernsey and the Isle of Man.
“This is also the course being adopted by many other countries, and it has industry support. This announcement is intended to provide certainty for our industry as they prepare for FATCA.”
To read an explanation of the intergovernmental agreements from law firm Withers click here
