CRS Guidelines (Version 4.1)

Summary

This document is the Cayman Islands Department for International Tax Cooperation (DITC) guidance on the Common Reporting Standard (CRS), the OECD-driven regime for automatic exchange of financial account information for tax purposes. It explains how Cayman Financial Institutions (FIs) must classify themselves and their account holders, conduct due diligence on pre-existing and new accounts, obtain and validate self-certifications, and report specified financial account information annually to the Cayman Islands Tax Information Authority (via the DITC) for exchange with partner tax authorities.

The guidance applies to all Cayman Financial Institutions (Reporting FIs), including funds, trusts, insurance companies, depository and custodial institutions, as well as their Non-Reporting FI and NFE counterparts that must be correctly classified.

• Registration and users: Obligations to register on the DITC Portal and appoint authorised users (Principal Point of Contact, Authorising Person).
• Filings: File annual CRS Returns or NIL Filing Declarations, and submit a CRS Compliance Form for certain entities.
• Record-keeping: Maintain records.
• Entity classification: Rules for classifying entities.
• Due diligence: Procedures for individual and entity accounts.
• Deactivation: The process and evidentiary requirements for deactivating an FI from the DITC Portal upon termination or dissolution.

The document also flags penalties: contravention of the CRS Regulations can attract administrative penalties (up to $50,000 for a body corporate, $20,000 otherwise) and potential criminal prosecution, and warns that misclassification of an entity may be treated as a CRS avoidance arrangement with associated sanctions.

Key obligations

• Cayman Financial Institutions must register on the DITC Portal by the next 30 April after the entity becomes an FI.
• FIs must submit an annual CRS Return or CRS Filing Declaration (including NIL returns where applicable) to the Authority via the DITC Portal by 31 July each year.
• FIs whose CRS obligations terminated after 16 April 2020 must submit a CRS Compliance Form annually by 15 September.
• FIs must perform due diligence on Financial Accounts, applying pre-existing account procedures to accounts open as at 31 December 2015 and new account procedures (including self-certification) to accounts opened on or after 1 January 2016.
• From 1 April 2018, FIs must use the Entity or Individual self-certification templates provided by the Authority when obtaining self-certifications.
• FIs must confirm the validity of self-certifications obtained from account holders and controlling persons and treat false self-certifications appropriately.
• Liquidators or other representatives responsible for winding up or dissolving an FI must arrange for a third party to complete any outstanding CRS obligations that cannot be finished before dissolution.
• Liquidators or representatives must maintain the FI's CRS records and respond to the Authority's information requests under Reg. 12 of the CRS Regulations for 6 years after filing the final CRS return.
• An FI seeking deactivation from the DITC Portal must submit documentary evidence supporting formal dissolution or cessation of existence (e.g., Certificate of Dissolution, trust deed showing termination, directors' resolution, letter explaining reclassification).
• FIs changing service provider must update their Principal Point of Contact or Authorising Person on the DITC Portal rather than deactivating the FI.
• FIs must respond to information requests from the Authority regarding the accuracy of information submitted on the DITC Portal.

Applies to

Cayman Financial Institutions (Reporting FIs), Non-Reporting Financial Institutions, Non-Financial Entities (Active and Passive NFEs), Segregated Portfolio Companies, Trustee Documented Trusts, Investment Entities, liquidators/representatives of FIs in dissolution

Deadlines

• 30 April: FIs are required to register on the DITC Portal by the next 30 April after the entity became an FI.
• 31 July: Annual reporting deadline for FIs to submit a CRS Return or CRS Filing Declaration.
• 15 September: Annual reporting deadline for FIs to submit the CRS Compliance Form.
• 31 December 2015: Effective date defining Pre-existing Accounts subject to CRS due diligence procedures (accounts in existence as at this date).
• 1 January 2016: New Accounts requiring self-certification are those opened on or after this date.
• 1 April 2018: From this date onward, FIs must use either the Entity or Individual self-certification template provided by the Authority.
• after 16 April 2020: CRS Compliance Form is required for all entities that terminated after this date.
• 6 years after filing the final CRS return: Liquidators/representatives must maintain FI records and respond to Authority information requirements for this period.