Cayman, US forging deal on pacts to uncover assets

KINGSTON, Jamaica (AP) — The Cayman Islands says it has concluded negotiations with the U.S. on pacts to report information on accounts of American citizens.

The U.K. Caribbean territory is considered the world’s sixth largest financial center and a major haven for mutual funds and private equity.

It says texts of the agreements will be made public once a signing ceremony is held. But island authorities say they will “pave the way for automatic exchange of information” under a sweeping U.S. law called the Foreign Account Tax Compliance Act.

Washington is demanding client data under the act, which is expected to take effect next year. It targets non-compliance by U.S. taxpayers with foreign accounts.

Cayman Financial Services Minister Wayne Panton said Tuesday that the pacts show the territory’s commitment to “transparency initiatives.”

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