On 4 July 2014, the Cayman Islands government issued Regulations to accompany The Tax Information Authority Law (2013 Revision). The Regulations seek to implement the provisions of the Model 1B intergovernmental agreements entered into between the Cayman Islands and each of the United States and United Kingdom with respect to the Foreign Account Tax Compliance Act (“FATCA”). Template FATCA self-certification forms have also been issued by the Cayman Islands Government.
As the Regulations are now effective under Cayman Islands law and FATCA takes effect from 1 July 2014, clients who have been awaiting finalisation of the Cayman Islands legislation are encouraged to contact their usual Walkers attorney to discuss any next steps required.
While the majority of affected Cayman Islands financial institutions have until the end of 2014 to register with the United States Internal Revenue Service for their Global Intermediary Identification Numbers (“GIIN”), now that the Cayman Islands legislation is finalised, we are encouraging clients to determine whether FATCA registration requirements will apply, and if necessary, submit GIIN registrations as soon as reasonably practicable. If not already completed, clients should also ensure that their compliance programmes meet the requirements of FATCA, either through internal procedures or through the appointment of suitable delegates. Walkers can assist with any advice required in this regard.