Declaration on Joining the CRS MCAA (Cayman Islands)

Summary

This document is the Cayman Islands' declaration and signed text of the Multilateral Competent Authority Agreement (MCAA) on the Common Reporting Standard (CRS), the OECD framework for automatic exchange of financial account information between tax authorities. On 29 October 2014, the Cayman Islands' Competent Authority (represented by the then Minister of Financial Services) signed the declaration agreeing to be bound by the MCAA, becoming a signatory as of that date. The Agreement takes effect between competent authorities in accordance with its Section 7 activation mechanism, involving bilateral activations rather than automatic effect for all signatories.

The MCAA itself is an intergovernmental agreement between tax Competent Authorities, not a direct rulebook for private financial institutions. It draws on data that domestic CRS legislation requires Reporting Financial Institutions to collect and report to the Competent Authority.

• Information exchanged: Categories of account and taxpayer information (name, address, TIN, account balance, income/proceeds) that each Competent Authority will exchange annually with other Competent Authorities for which the Agreement 'is in effect'.
• Other provisions: Confidentiality and data safeguards, use limitations, consultation and suspension/termination procedures, and cost-sharing for administration by the OECD Coordinating Body Secretariat.

The copy includes Annexes A-E marked '[To be completed]', covering the non-reciprocal jurisdictions list, transmission methods, data safeguards, the confidentiality questionnaire, and the list of competent authorities for which the Agreement is in effect. This means this particular certified copy does not itself list Cayman's activated exchange partners.

Annex F sets out the intended dates for the first exchanges of information for new accounts, and for individual and entity accounts, and preexisting accounts opened or maintained relative to 1 January 2016 and 31 December 2015 respectively.

Key obligations

• The Cayman Islands Competent Authority must annually exchange, on an automatic basis, the CRS-specified account holder and financial account information with each other Competent Authority for which the Agreement is in effect.
• The Competent Authority must ensure appropriate confidentiality and data protection safeguards are in place for information received and used solely for the purposes set out in the Convention.
• The Competent Authority must notify the Coordinating Body Secretariat of any termination of participation in the Agreement (with termination taking effect on the first day of the month following expiry of a 12-month notice period), and previously exchanged information remains confidential thereafter.
• Jurisdictions listed in Annex A (non-reciprocal) send but do not receive information; jurisdictions not listed always receive information under the reciprocal exchange arrangement.
• Reporting Financial Institutions (under underlying domestic CRS law) must apply due diligence procedures consistent with the Common Reporting Standard so the required account holder and controlling person information can be identified and reported to the Competent Authority for exchange.

Applies to

Competent Authority (DITC), Jurisdiction Financial Institutions, Reporting Financial Institutions

Deadlines

• 29 October 2014: Date the Cayman Islands Competent Authority signed the Declaration and became a signatory to the CRS MCAA.
• September 2017: Intended date by which information on New Accounts (opened on or after 1 January 2016) and Preexisting Individual High-Value Accounts is to be exchanged, per Annex F.
• September 2017 or September 2018: Intended dates by which information on Preexisting Individual Low-Value Accounts and Entity Accounts (maintained as of 31 December 2015) is to be exchanged, depending on when the account is identified as reportable, per Annex F.