Guernsey has signed a Model I intergovernmental agreement with the US Government in relation to the Foreign Account Tax Compliance Act (FATCA).
It was signed on Friday 13 December by Guernsey's Chief Minister, Peter Harwood, at the US Embassy in London with the US Ambassador to the UK, His Excellency Michael Barzun.
Guernsey's Chief Minister said: "Guernsey has been committed to exchanging tax information since it signed its first Tax Information Exchange Agreement (TIEA) with the US authorities in 2002. Today we have enhanced those arrangements, and in doing so we have further enhanced our reputation and our leadership position on tax transparency.
"This is a further step in the direction we have been travelling for a decade or more. FATCA is shaping the new global standards in information exchange and once again Guernsey has shown its commitment to meeting those new global standards decisively and at the earliest possible juncture.
"This is an important agreement for our finance sector. It gives them the long-term sustainability and stability that they have asked for clearly and consistently."
Jersey and the Isle of Man also signed similar agreements with the US Government at the same time as Guernsey.
Fiona Le Poidevin, Chief Executive of Guernsey Finance - the promotional agency for the Island's finance industry, said: "I am very pleased that Guernsey has signed this FATCA agreement with the US. It builds on the TIEA we have had with the US since 2002, our adoption of automatic exchange of information under measures equivalent to the EU Savings Tax Directive in 2011 and the package of tax measures we signed with the UK Government in October.
"The OECD has continually reaffirmed that Guernsey adopts international standards of tax transparency and exchange of information and this FATCA agreement with the US further demonstrates our continued fight against tax evasion."
The FATCA agreement was concluded 48 hours after Guernsey's parliament gave its unanimous approval and committed Guernsey to continuing to meet the highest standards of tax transparency. At the same time, the Island's parliament also agreed to request the extension to Guernsey of the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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