CAYMAN ISLANDS: UPDATE ON CRS IMPLEMENTATION, REGULATIONS
The Cayman Islands Tax Information Authority is moving forward with its plans for implementing the OECD Common Reporting Standard (CRS). The Cayman Islands was a signatory to CRS when released in October 2014.
he Cayman Islands tax authority in September 2015 released a draft version of regulations—Tax Information Authority (International Tax Compliance) (Common Reporting Standard) Regulations, 2015—for industry review and comment. The draft regulations would permit the use of a self-certification form, possible similar to one under the FATCA regime, but a final form has not yet been released. The draft regulations have been approved by the FATCA/CRS working group of the Ministry of Financial Services, and it is expected that the final regulations could be released this month (October 2015).
KPMG OBSERVATION
Financial institutions in the Cayman Islands need to consider beginning preparations for compliance with CRS and (1) to begin planning for CRS on-boarding procedures from 1 January 2016, and (2) to begin planning for the due diligence procedures required in 2016 and 2017. As part of these action steps, financial institutions will need to consider the processes, procedures, and technological solutions necessary to be compliant with CRS.
Read an October 2015 report [PDF 236 KB] prepared by the KPMG member firm in the Cayman Islands.
