REVIEW OF THE ECONOMY 2013
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SUSTAINING GROWTH, SECURING PROSPERITY
reviewed by the Ministry of Finance and the
Economy and subsequently the Government.
Once approved, the drafting of the Occupational
Pension Plans Bill will commence.
Foreign Account Tax Compliance Act (FATCA)
The United States (US) Foreign Account Tax
Compliance Act (FATCA) became law on March
18, 2010 and took effect from January 1, 2013
and is designed to combat offshore tax evasion
by US persons. The legislation requires the
global financial industry to track and report
to the Internal Revenue Service (IRS), any US
persons who hold offshore financial accounts.
Trinidad andTobago has agreed to adopt Model 1
Intergovernmental Agreement (IGA) to Improve
Tax Compliance. Under Model 1, Financial
Institutions (FFIs) in Trinidad and Tobago will
report the required information to the Board
of Inland Revenue (BIR), the Local Competent
Authority. FFIs will not be required to withhold
30% of payments they receive or on payments
made to account holders.
The IGA (in principle) is scheduled to be signed
by December 2013. Consequently, local financial
institutions will need to be registered with the
United States Internal Revenue Service (IRS)
prior to March 31, 2014, with FATCA reporting
commencing on September 30, 2015.
National Financial Crisis Management Plan
The CBTT is currently finalising a National
Financial Crisis Management Plan, to be used
in the management and resolution of financial
crises involving institutions regulated by the
CBTT. The document is expected to be finalised
by the end of 2013.
in June 2012, the Bill lapsed. The draft legislation
has since been revised to incorporate additional
comments received from the industry. In May
2013, the revised Bill was introduced for debate
in the Senate and has once again lapsed with the
proroguing of Parliament in July 2013.
The Draft Credit Union Bill
The Draft Credit Union Bill seeks to regulate
the financial activities of Credit Unions and of
secondary bodies carrying on the business of
a Credit Union by, inter alia, removing Credit
Unions from the portfolio of the Commissioner
for Co-operative Development and placing them
under the purview of the Central Bank, and to
provide for other related matters.
The Draft Credit Union Bill is currently being
reviewed by the Legislative Review Committee.
Further, a policy for the establishment of a Fund
for the protection of members’ deposits and
withdrawable shares is being designed by CBTT
in collaboration with the Ministry of Finance and
the Economy.
Occupational Pension Plan Bill
The private pension fund industry in Trinidad
and Tobago largely comprises occupational
pension plans and annuity-type products that
are sold by insurance companies, banks and
trust companies. Given the significance of the
pension industry in the financial system, a robust
regulatory and supervisory framework is being
developed to facilitate effective governance and
supervision of pension plans.
In December 2012, the Central Bank issued the
Final Policy Proposal Document (PPD) for a new
Occupational Pension Plan Bill after extensive
industry consultation.ThePPD is currently being
THE MONETARY SECTOR
