The Cayman Islands announced the deadline for Y2019 FATCA reporting has been extended to November 16, 2020. However, the deadline for CRS remains September 18, 2020.
IRS Government to Government Extension
Earlier this week, the IRS announced that it was granting an extension for the government to government exchange of Model 1 IGA FATCA Y2019 data from September 30, 2020 to December 31, 2020. In light of this extension, the Cayman Islands Department for International Tax Cooperation (DITC) extended the deadline for Financial Institutions (FIs) to submit their Y2019 FATCA data.
Cayman Islands FIs may submit their data as soon as the new Cayman Islands portal opens. The DITC expects to launch its new portal in June 2020. [See my previous posts: FATCA & CRS: Cayman Deadline Extended to September 18, 2020 and FATCA/CRS: Caymans Announces New Portal under Development.]
New Cayman Islands CRS Compliance Form
The DITC issued its new CRS Compliance Form which is due December 31, 2020. In future years commencing with Y2020 data due in 2021, the form will be due annually by September 15.
The form is akin to the IRS FATCA Responsible Officer (RO) Certification and must be completed by Reporting FIs and Trustee Documented Trusts. There are five sections to the form:
Section 1 - Financial Institution Profile Data
Section 2 - Financial Account Data
Section 3 - AML/KYC and Accounting
Section 4 - CRS Process
Section 5 - Declaration
DITC’s Notes on the CRS Compliance Form
The DITC published Notes for Users on the DITC website which explain the purpose of the CRS Compliance Form and provide a high-level overview of the form’s requirements. The Notes for Users will be followed up by a detailed user guide once completed. When the new DITC portal is open in June 2020, FIs will be able to electronically submit the required data.
It should be noted Section 5 - Declaration of the form includes the following statement regarding the signatory:
"Acknowledges that there are sanctions for providing inaccurate information to the TIA and for contravention of the CFI’s compliance and due diligence obligations."
FIs should have an internal discussion prior to submission to ensure that the person who submits the data in the DITC portal has appropriate authority or permission to do so.