Automatic Exchange of Information (AEOI) | KPMG | KY

Automatic Exchange of Information (AEOI)

Automatic Exchange of Information (AEOI)

The Common Reporting Standard (CRS), US and UK FATCA

The Common Reporting Standard (CRS), US and UK FATCA

The Cayman Islands Tax Information Authority (“Cayman TIA”) following the implementation of US FATCA, has confirmed that they are moving forward with the implementation of the OECD Common Reporting Standard (CRS).

CRS will have an impact on Financial Institutions (“FIs”) in the Cayman Islands and FIs should be actively taking steps to prepare for it. Furthermore, FIs also need to consider the impact of UK FATCA.

Compliance with CRS is required by Cayman Islands Financial Institutions effective January 1, 2016. As has become standard practice with US FATCA, counterparties such as brokers, custodians, banks, and fronting companies will request a self-certification proving country of tax residence in order to comply with CRS. 

CRS expands the scope of US and UK FATCA by removing the specific carve-out afforded to Cayman Islands investment managers and captive insurance companies. As such, these companies should consider reviewing their classification to ensure it is appropriate under CRS. It also has specific differences in the implementation and applicability to FIs. FIs can expect to see:

  • A major increase in reporting standards
  • A requirement to collect complex and varied information
  • A significant impact on systems and culture
  • A much larger scope than that demanded by FATCA

KPMG has a strong proposition around AEOI, and a growing set of credentials and client experience. 

How can KPMG help?

KPMG can provide an analysis of CRS and FATCA’s impact on your FI providing you with a detailed overview of the processes required to be compliant under all regulations (CRS, US and UK FATCA). This report will also outline the key CRS, US and UK FATCA reporting dates, due diligence requirements and reporting obligations. This will provide those responsible with a detailed summary of the key tasks and will be a useful resource as part of their Automatic Exchange of Information (“AEOI”) compliance program.

KPMG can also assist in filling out the appropriate self-certification forms to certify your AEOI status to counterparties and third parties.

Further ways in which KPMG can assist you with the implementation of CRS and FATCA include:

  • Performing an Investor/Account Holder Review on your behalf or reviewing a sample of your classifications for accuracy.
  • Providing training/workshops to your FI to remain abreast of the latest developments and remain compliant.
  • Submitting the annual required reports to the Cayman Tax Information Authority.

Have questions?

KPMG in the Cayman Islands has an AEOI Help Desk for any questions you may have. Contact the KPMG Cayman AEOI team at aeoi@kpmg.ky or fatca@kpmg.ky.

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