Further to our update1 of 24 March 2020, the Cayman Islands Ministry of Financial Services and the Cayman Islands Monetary Authority ("CIMA") recently introduced additional policy concessions and filing extensions in light of COVID-19.
- De-registrations: CIMA has confirmed
that it will accept uncertified resolutions confirming the
de-registration / cancellation date of a fund.
- Fund Annual Return ("FAR"):
The Mutual Funds (Annual Returns) (Amendment) Regulations (2020)
(the "Regulations") are now in force and amend the FAR
form required to be submitted to CIMA by registered mutual
funds. Notwithstanding the Regulations, CIMA has indicated
that all mutual funds with a 31 December 2019 financial year end
can submit the current form.
- Extended Filing Dates: CIMA has allowed a one month extension for filing deadlines 2 for some regulatory returns with due dates through 30 June 2020. These related primarily to the banking and money services sector and not, generally, to investment funds.
Key Ministry of Finance Measures
- Registrar of Companies (the "ROC")
Filings: The deadline after which penalties will
apply in respect of annual return filings for Cayman Islands
entities has been extended to 30 June 2020. As the economic
substance notification process was connected to annual return
filings for companies, this deadline has also been extended to 30
June 2020. Where fees / returns remain outstanding on 1 July
2020, penalties will be assessed at 33.33% of the annual fee, with
penalties rising to 100% of the annual fee on 1 October 2020.
Please note the ROC continues to apply good standing to entities
that completed its annual return filings by 31 January 2020.
Despite the extended deadline regarding the application of any
penalties, entities will only be deemed to be in good standing by
the ROC once all annual return filings and economic substance
filings have been duly completed and associated fees paid.
- FATCA / CRS Reporting: As the FATCA / CRS filing portal remains closed and is not expected to open until June 2020, the FATCA / CRS reporting deadline has been extended to 18 September 2020 for this year only.
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.