Cayman Islands CRS Reviews are Underway
The Cayman Islands’ Department for International Tax Cooperation (“DITC”) has announced that comprehensive Common Reporting Standard (“CRS”) reviews, which began in November 2024, are now underway.
Are you prepared?
These reviews, which are similar to an onsite inspection or an audit, will examine Cayman Islands Financial Institutions’ (“FIs”) adherence to their CRS obligations. Amidst heightened scrutiny on CRS compliance, many FIs may face challenges in meeting all requirements and adequately preparing for these reviews. Should an examination be required, the Fund’s Principal Point of Contact (“PPoC”) will receive an information request via email, focusing on three main areas of the CRS review which may include:
1. Financial Institution Information
The PPoC may be asked to provide the following:
- Contact details of the Directors
- Legal documents and Financial Statement
- CRS Policies and Procedure
- These are required to be specific to the entity and demonstrate how the FI ensures compliance with CRS requirements (including due diligence, responsible persons, documentation and other key items).
2. Service Provider Information
The FI will be asked to provide the contact details of key personnel, including Automatic Exchange of Information (“AEOI”) Delegate, Administrator, Investment Manager, Money Laundering Reporting Officer (“MLRO”)/Anti-Money Laundering Compliance Officer (“AMLCO”) and service providers.
3. Financial Account Information
An investor classification report for all reportable and non-reportable investors will be required to be submitted.
Additionally, the DITC will issue breach notices, allowing Financial Institutions the opportunity to correct any incorrect or incomplete data submitted. It is crucial to address these promptly to avoid further administrative actions by the DITC.
How can Waystone help?
Our experienced team is here to help you navigate the complexities of CRS compliance with confidence. Waystone’s CRS services include:
- Expert guidance to ensure you meet CRS requirements
- Tailored solutions customised to your unique business needs
- AEOI mock audits to identify gaps and risks in your CRS reporting.