Most Read Contributor in Cayman Islands, September 2016
The Cayman Islands Government is aware that the EU's
blacklist is based upon the individual, national blacklists of EU
countries. However, we also are aware that major European
economies, which have been rated similar to the Cayman Islands on
upholding international standards on transparency, do not list our
The national blacklists that have resulted in this overall
blacklisting are primarily generated by European countries that are
not major economic trading partners of the Cayman Islands. These
countries therefore may not be aware of Cayman's adherence to
standards, both in terms of our bilateral and multilateral
agreements for exchange of information.
Save for Bulgaria, we have EOI mechanisms with all of the
jurisdictions that have blacklisted Cayman.
It is unfortunate that the EU black list unfairly downplays the
significant strides made by Cayman, as well as the significant
global accomplishments in the area of transparency.
Fact Sheet: Cayman's Participation and Cooperation in
Global Transparency Measures
Operationally, in March 2015 Cayman
announced the opening of our portal for automatic exchange of
information (AEOI), which completes our process for building an
AEOI compliance framework.
In 2014 Cayman passed an amendment to
its Tax Information Authority Law that enables all forms –
automatic, spontaneous, and by request – of exchange of
information for tax purposes.
Cayman is one of more than 50
jurisdictions committed to undertaking the first AEOI exchanges for
tax purposes, under the Common Reporting Standard, by 2017. The CRS
is the OECD's mechanism that standardises global AEOI.
Cayman has 35 signed tax
information-exchange agreements, with a number of others in
Cayman signed early commitments to US
and UK FATCA in 2013. In regard to the US, today we now have more
than 27,000 registered foreign institutions that have registered
with the US Internal Revenue Service, which is one of the strongest
representations of jurisdictional cooperation with FATCA.
Cayman sits on the 19-member Steering
Group; and the 30-member Peer Review Group, of the OECD's
Global Forum on Transparency and Exchange of Information for Tax
Purposes. The Global Forum is the largest tax body in the world,
with 127 member countries.
Furthermore, Cayman is one of the
Global Forum's four vice-chairs, which carry out extensive Peer
Reviews to evaluate the tax information exchange regimes of OECD
and non-OECD countries.
Cayman was rated as largely compliant
in the Global Forum's rankings released in 2013.
Our regime of providing tax
information to relevant authorities, from data collected, verified
and maintained by licensed and regulated corporate service
providers, has been in place for 15 years, and is firmly in line
with the G20's High-Level Principles on Beneficial Ownership
Transparency, which were issued in November 2014. We therefore
align with principles that the G20 countries themselves uphold as
In addition to the Global Forum,
Cayman's engagement in international regulatory initiatives
includes our participation since 2005 in the EU Savings Directive;
and our membership through CIMA in the Offshore Group of Banking
Supervisors; Working Group on Cross Border Banking; Caribbean Group
of Banking Supervisors; and the Association of Supervisors of Banks
of the Americas (ASBA), among others.
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On the 9 September 2016 the MFSA issued feedback to its consultation of the 1 April 2016 in relation to intra-group loans.
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