Bridgetown, Barbados (TDN) -- Caribbean banks are expressing concern after the United States Internal Revenue Service (IRS) obtained a court order to serve Wells Fargo Bank with a 'John Doe' summons as part of a criminal investigation into suspected tax evasion by United States clients of First Caribbean International Bank (FCIB).
In the complaint, the IRS claims that U.S. taxpayers use FCIB to maintain offshore accounts and to avoid paying taxes. Because the IRS has no jurisdiction over the FCIB, they have approached its correspondent bank in the United States, Wells Fargo to gain access to data on wire transfers and other direct bank transactions.
The IRS launched the investigation after 120 FCIB account holders came forward under the IRS voluntary disclosure program. The account holders who voluntarily provided information may escape sanctions by the IRS but others who have not reported and may be found out under the court order may face stiff penalties.
Meanwhile, bank executives in the Caribbean have expressed concern over the IRS action with newspapers in the Bahamas reporting bank officials as describing it as a ‘scary move”.
FCIB is headquartered in Barbados with branches in 18 Caribbean countries including Dominica.
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