This FATCA word just in from the Channel Islands on
Why in Jersey and Guernsey an FFI cannot lawfully transfer information to the US without that person’s permission …
Principle 8 provides that transfers are only permitted to countries that are deemed to have adequate protection of confidential information. US data protection law is much weaker than that of Jersey and the United States is not a country which is listed as one having adequate data protection – the de facto position in Jersey and Guernsey is therefore that an FFI can’t lawfully transfer information to the US without that person’s permission. Again, whilst client consent is an exception to this principle, compliance with another country’s laws is not. On the face of it, it will therefore be unlawful for a Jersey or Guernsey institution to transfer information pursuant to, or indeed register for, FATCA.
Rosie Stott – Jersey: The United States Foreign Account Tax Compliance Act (“FATCA”) – Implications For Financial Services Businesses In The Channel Islands – 4 April 2012