Addendum to the CRS MCAA

Summary

This document is a signed Declaration by the Cayman Islands' Competent Authority (DITC) adopting the Addendum to the CRS Multilateral Competent Authority Agreement (CRS MCAA), effective as a signatory from 26 November 2024. The Addendum amends the CRS MCAA to add new categories of information that competent authorities must exchange with each other about Reportable Accounts, reflecting the 2023 update to the OECD's Common Reporting Standard (CRS).

The Addendum itself operates between tax Competent Authorities (government-to-government), not directly on private sector entities. It expands the data fields exchanged for each Reportable Account as follows:

• Whether a valid self-certification was obtained
• The role(s) of Controlling Persons
• Account type, preexisting-vs-new status, and joint account details
• Equity interest holder roles in investment entities that are legal arrangements

These enhanced data items derive from underlying due diligence and reporting obligations that will eventually be implemented into Cayman Islands domestic CRS regulations, which in turn apply to Reporting Financial Institutions (e.g., banks, trust companies, investment entities, fund administrators).

Section 2 of the Addendum requires each signatory Competent Authority to notify the Co-ordinating Body Secretariat, at the time of signature or as soon as possible afterward, either confirming it has enacted the necessary domestic legislation to implement the 2023 CRS update (specifying effective dates) or, if not yet in place, requesting a transitional period during which it may continue exchanging information without applying the enhanced due diligence/reporting procedures. It must also notify which other Jurisdictions' transitional requests it accepts.

Key obligations

• The Competent Authority of the Cayman Islands (DITC) must provide the Co-ordinating Body Secretariat, at the time of signature of the Addendum or as soon as possible thereafter, an updated notification under subparagraph 1(a) of Section 7 of the CRS MCAA either confirming that domestic legislation implementing the 2023 CRS update is in place (and specifying relevant effective dates) or requesting a transitional period if such legislation is not yet in place.
• The Competent Authority must also provide an updated notification under subparagraph 1(f) of Section 7 of the CRS MCAA specifying which other Jurisdictions' transitional-period requests it accepts.
• Once effective for the Cayman Islands, the additional data items specified in Section 1 (self-certification status, Controlling Person roles, account type/preexisting-new/joint account details, and equity interest holder roles) must be included in the information exchanged with other signatory Jurisdictions' Competent Authorities with respect to Reportable Accounts.

Applies to

Competent Authorities (tax administrations), Reporting Financial Institutions (indirectly, once implemented into domestic CRS regulations)

Deadlines

• 26 November 2024: Date from which the Cayman Islands Competent Authority is considered a signatory to the Addendum and from which it will come into effect in accordance with paragraph 1 of Section 2.
• at the time of signature of this Addendum or as soon as possible thereafter: Deadline for the Competent Authority to submit updated notifications under Section 2(2)(a) and 2(2)(b) to the Co-ordinating Body Secretariat regarding implementation status and acceptance of transitional periods.