The Cayman Islands government, on October 20 2015, advised that
the CRS regulations are now in force and are a key component of
Cayman's implementation of automatic exchange of financial
account information in accordance with the internationally agreed
The Cayman Islands government announcement also advised that
further parts of the regulations, addressing compliance, will be
issued in December 2015. These may include details regarding
penalties for non-compliance.
The Cayman Islands Working Group is also considering questions
regarding guidance and self-certification forms at this time,
although guidance is not expected to be extensive. Guidance will
address any particular local issues.
Timeline for CRS Implementation in 'Early Adopter'
What does CRS Mean for Reporting Financial Institutions?
CRS is far-reaching in scope and requires compliance in 2016 and
exchange of information initially in 2017, between 50+ 'early
adopter' countries and by 2018 between 90+ countries.
Please see the list of more than90
countries that have committed to
implement the CRS including the61
countries that have already signed the
Multilateral Competent Authority Agreement to facilitate the
A Reporting Financial Institution (RFI) should establish
policies and maintain procedures designed to identify Reportable
Accounts. RFIs will report to their local tax authorities, which
will share the information with tax authorities in partner
RFIs should now take note of some these requirements, under the
Any RFI that has reporting obligations under the Regulations
shall notify the TIA to that effect.
When notifying the TIA, the RFI should provide the following
Categorization of the RFI as determined in accordance with the
Principal Point of Contact
RFIs will be required to provide notification no later
than 30th April in the first calendar year in which it is required
to comply with reporting obligations under these Regulations, which
means for the first reporting year 2016, the deadline for
notification will be 30 April 2017. Reporting will be required on
or before 31 May 2017.
If the RFI maintains no Reportable Accounts, it will not be
required to file a return but may, at its own option, do so in
accordance with the regulations.
Steps to Take
Financial Institutions should first familiarize themselves with
the CRS and its commentaries.
They should conduct due diligence to determine the tax status
and residence of their account holders.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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