Global Forum on Transparency and Exchange of Information for Tax Purposes › Phase 1 Peer Review Report Summary: The Federated States of Micronesia (FSM)
The The Federated States of Micronesia (FSM) is not a Global Forum member and its review was taken up after its identification as a jurisdiction of relevance for Global Forum’s work in view of its newly set up captive insurance industry. The review shows that the legal and regulatory framework in the FSM ensures availability of bank, ownership and accounting information in a number of instances – notably with regard to captive insurance business – however it presents some serious gaps in respect of other entities formed or operating in the FSM. In addition, with the exception of captive insurance companies, the legislation is generally deficient with regard to accounting information. The FSM has not concluded any international arrangements providing for exchange of information for tax purposes. In any case the FSM has no powers to obtain any information for EOI purposes. The Global Forum recommends that the FSM not move to a Phase 2 Review until it has acted on the recommendations made in the report and asks the FSM to report back on the steps taken to address the recommendations made in this review within 6 months. For further information on Micronesia's exchange of information practices and to read the full report click here.