Second Webcast Now Available On-Demand

This webcast focuses on the impact FATCA and CRS are having on structured finance vehicles set up in the BVI, Cayman Islands and Ireland and covers in detail the impending reporting and notification deadlines in each of these jurisdictions.

View Now

Webcast Now Available On-Demand

A topical discussion on recent updates covering some of the more frequently asked questions around FATCA and CRS.

View Now

FATCA and CRS

Time is marching on, as are the deadlines for FATCA and CRS. Our interactive timeline can assist in keeping you informed of important dates.

Maples and Calder and MaplesFS (together the "Maples group") are uniquely placed to provide legal advice and administrative solutions to clients on all aspects of the Automatic Exchange of Financial Account Information ("AEOI") due diligence and reporting regimes such as FATCA and the OECD Standard for Automatic Exchange of Financial Account Information – Common Reporting Standard ("CRS") with respect to Cayman Islands, British Virgin Islands and Irish financial institutions.

The British Virgin Islands, the Cayman Islands and Ireland have entered into inter-governmental agreements with the United States (the "US IGAs") to give effect to the US Foreign Account Tax Compliance Act ("US FATCA") and a multilateral competent authority agreement (the "MCAA") to implement CRS.  The British Virgin Islands and the Cayman Islands have also entered into inter-governmental agreements with the United Kingdom (the "UK IGAs") in broadly similar terms to the US IGAs to improve international tax compliance ("UK FATCA"). The UK is also a participating jurisdiction under CRS therefore it is expected that UK FATCA will be subsumed by CRS by the end of 2017. AEOI is the collective term used to refer to US FATCA, UK FATCA and CRS.

Each of the British Virgin Islands, the Cayman Islands and Ireland has passed laws (the "AEOI Laws") to give effect to their AEOI commitments.  Under the AEOI Laws, all "Financial Institutions" will be required to comply with the relevant registration, due diligence and reporting requirements, except to the extent that they can rely on an exemption that allows them to become a "Non-Reporting Financial Institution" with respect to one or more of the AEOI regimes.  The AEOI Laws require each Financial Institution to, amongst other things (i) register with the United States Internal Revenue Service to obtain a Global Intermediary Identification Number (in the context of the US IGA only), (ii) conduct due diligence on its accounts to identify whether any such accounts are considered "Reportable Accounts", and (iii) report information on such Reportable Accounts to the local fiscal authority. 

Account holders in such Financial Institution will be required to provide certain personal financial information, including certifications as to such account holder's global tax residencies and tax identification numbers, to the Financial Institution.  The Financial Institution's compliance with the AEOI Laws may result in the disclosure of the account holder's financial information to the local fiscal authority which will transmit such information to the overseas fiscal authority relevant to a reportable account annually on an automatic basis.

The term "Financial Institution" catches entities that are depository institutions, custodial institutions, investment entities and specified insurance companies.  Depository institutions and custodial institutions are largely self-explanatory terms, and specified insurance companies will mostly be long-term insurers.  Investment entities is a term defined very broadly and catches most types of investment fund, investment managers and advisors, and other entities that might be service providers in fund management world.  An entity that is not a Financial Institution will be a non-financial entity and out of scope of the AEOI Laws although if that entity is an account holder of a Financial Institution it may in certain circumstances be required to confirm to such Financial Institution details of its controlling persons.  If in doubt, please take appropriate legal advice as to whether an entity is in scope and any related compliance obligations.

FATCA & CRS - Why Choose Maples

Watch the video

FATCA & CRS - How We Can Help

Watch the video

How the Maples Group Can Help

The Maples group's team of AEOI specialist lawyers and regulatory compliance professionals is comprised of key members from the core areas of our global practice. 

Our understanding of the application and evolution of FATCA and CRS is second to none, as members of the Maples group have worked closely with the Cayman Islands, Irish and British Virgin Islands governments in relation to the development of the regimes within these jurisdictions.

We provide constructive and insightful advice to a range of clients, including investment managers, collateral managers, fund administrators, trustees and investment banks, offering flexible and cost effective solutions that can be tailored to ensure clients meet the necessary requirements.

We can assist clients on all aspects of AEOI, with services including:

  • Providing Cayman Islands, British Virgin Islands and Irish legal advice or assistance in relation to the potential application of FATCA and CRS, including entity classification, local and foreign tax authority registration and notification requirements, availability of reporting exemptions, self-certification and due diligence requirements.
  • Drafting or reviewing language for incorporation into offering materials, constitutional and other documents, where relevant.
  • Drafting or reviewing self-certification forms, sponsored entity agreements and delegation agreements.
  • Drafting or reviewing policies and procedures.
  • Registering a client with the IRS and obtaining a Global Intermediary Identification Number ("GIIN"), and/or registration, notification and liaison with local authorities, as applicable.
  • Classification, validation and remediation of pre-existing accounts.
  • Onboarding new accounts to ensure required data is captured, and obtaining forms and due diligence documentation for validation up front to facilitate compliance.
  • Preparation and filing of reports that are compliant with applicable legal requirements.
  • Sponsoring entity services - taking responsibility for FATCA compliance on behalf of the client, including performing all initial and ongoing due diligence to identify any reportable accounts, GIIN registration and reporting where applicable.

Timelines for Implementation in the Cayman Islands, BVI and Ireland

Cayman Islands

2014

1 July 2014

US FATCA/UK FATCA

All financial accounts opened with Reporting Financial Institutions from this date and onwards required to be subject to "new account" due diligence procedures1.  All financial accounts existing as at 30 June 2014 with Reporting Financial Institutions required to be subject to "pre-existing account" due diligence procedures.

1 Note that an election is available under the Cayman US FATCA Regulations to extend the deadline for being a "new entity account" until 31 December 2014.

31 December 2014

US FATCA

Deadline for pre-existing Reporting Financial Institutions to obtain GIINs from the IRS

2015

1 January 2015

US FATCA

Reporting Financial Institutions without GIINs liable to be subject to withholding

30 April 2015

Cayman US FATCA Regulations

Statutory notification deadline for Reporting Financial Institutions.

Comments

This deadline is subject to soft enforcement.  See 29 May 2015 below.

29 May 2015

Cayman US FATCA Regulations

Date upon which the Tax Information Authority is likely to start enforcing the law with respect to notifications.

Comments

The Cayman US FATCA Regulations require notification of: (i) the name of the Reporting Financial Institution; (ii) categorisation of the Reporting Financial Institution (i.e. reporting status); (iii) where registered with the IRS, its GIIN; and (iv) certain details of its principal point of contact.

31 May 2015

Cayman US FATCA Regulations

First statutory reporting deadline (limited reporting) to the Tax Information Authority in respect of US Reportable Accounts.

Comments

This deadline is subject to soft enforcement. See 26 June 2015 below.

26 June 2015

Cayman US FATCA Regulations

Date upon which the Tax Information Authority is likely to start enforcing the law with respect to reporting.

Comments

If there are no US Reportable Accounts identified a nil return can be filed, but this is not mandatory. Failure to file a positive return could result in penalties and/or enforcement action by the Tax Information Authority2.

2 See the Tax Information Authority website for information on the format in which reports are to be submitted.

30 June 2015

Cayman US FATCA Regulations

Pre-existing "high value individual investor" enhanced due diligence to be completed - so called "remediation".

Cayman UK FATCA Regulations

Pre-existing "high value individual investor" enhanced due diligence to be completed - so called "remediation".

16 October 2015

CRS

The Tax Information Authority (International Tax Compliance) (Common Reporting Standard) Regulations, 2015 passed in the Cayman Islands to give effect to CRS from 1 January 2016. 

Comments

Over 90 jurisdictions (including the Cayman Islands) have now committed to adopt CRS in order to start exchanging financial account information.

1 January 2016

CRS

All financial accounts opened with Reporting Financial Institutions from this date and onwards required to be subject to "new account" due diligence procedures.  All financial accounts existing as at 31 December 2015 with Reporting Financial Institutions required to be subject to "pre-existing account" due diligence procedures.

Comments

As with the requirements under the Cayman US FATCA Regulations and the Cayman UK FATCA Regulations, CRS contains detailed requirements for due diligence/information verification/remediation."

30 April 2016

Cayman US FATCA Regulations

Statutory notification deadline for Reporting Financial Institutions who have come into scope since 1 January 2015.

Cayman UK FATCA Regulations

Statutory notification deadline for Reporting Financial Institutions.

Comments

These deadlines are subject to soft enforcement. See 2 September 2016 below.

31 May 2016

Cayman US FATCA Regulations

Second statutory reporting deadline (less limited reporting) to the Tax Information Authority in respect of US Reportable Accounts.

Cayman UK FATCA Regulations

First statutory reporting deadline (limited reporting) to the Tax Information Authority in respect of UK Reportable Accounts.

Comments

These deadlines are subject to soft enforcement.  See 2 September 2016 below.

30 June 2016

Cayman US FATCA Regulations

All other pre-existing investor due diligence to be completed - so called "remediation".

Cayman UK FATCA Regulations

All other pre-existing investor due diligence to be completed - so called "remediation".

2 September 2016

Cayman US FATCA Regulations and Cayman UK FATCA Regulations

Date upon which the Tax Information Authority is likely to start enforcing the law with respect to notifications (see 30 April 2016 above).

Comments

The Cayman US FATCA Regulations and Cayman UK FATCA Regulations require notification of: (i) the name of the Reporting Financial Institution; (ii) categorisation of the Reporting Financial Institution (i.e. reporting status); (iii) where registered with the IRS, its GIIN; and (iv) certain details of its principal point of contact.

Cayman US FATCA Regulations

Date upon which the Tax Information Authority is likely to start enforcing the law with respect to second reporting date deadline in respect of US Reportable Accounts (see 31 May 2016 above).

Cayman UK FATCA Regulations

Date upon which the Tax Information Authority is likely to start enforcing the law with respect to first reporting date deadline in respect of UK Reportable Accounts (see 31 May 2016 above).

Comments

Note that if there are no US or UK Reportable Accounts under FATCA identified a nil return can be filed but this is not mandatory.  Failure to file a positive return could result in penalties and/or enforcement action by the Tax Information Authority.

2016

31 December 2016

CRS

Due diligence on pre-existing "high value" individual account holders to be completed.

2017

30 April 2017

CRS

Deadline by which a Reporting Financial Institution is required to make certain notifications as to its CRS reporting status to the Tax Information Authority.

Comments

The CRS requires notification of: (i) the name of the Reporting Financial Institution; (ii) categorisation of the Reporting Financial Institutions (i.e. reporting status); and (iii) certain details of its principal point of contact.

31 May 2017

Cayman US FATCA Regulations

Third reporting date deadline (full reporting) to the Tax Information Authority in respect of US Reportable Accounts.

Cayman UK FATCA Regulations

Second reporting date deadline (full reporting) to the Tax Information Authority in respect of UK Reportable Accounts.

CRS

First reporting date deadline to the Tax Information Authority in respect of relevant Reportable Accounts under CRS.

Comments

Note that if there are i) no US or UK Reportable Accounts under FATCA and/or ii) no Reportable Accounts under CRS identified, a nil return can be filed but this is not mandatory. Failure to file a positive return could result in penalties and/or enforcement action by the Tax Information Authority.

As the UK is also a Participating/Reportable Jurisdiction under CRS, there is currently a requirement to report under both the Cayman UK FATCA Regulations and CRS. However, it is expected that UK FATCA will be subsumed by CRS from the end of 2017. Wherever UK FATCA or CRS requires more reporting in 2017, then the "more" should be reported. 

31 December 2017

CRS

Due diligence on pre-existing "lower value" individual account holders and pre-existing entity account holders to be completed.

British Virgin Islands

2016

30 June 2016

BVI US FATCA Regulations

Second statutory deadline (less limited reporting) for reporting to the International Tax Authority in respect of US Reportable Accounts for the reporting year 2015.

BVI UK FATCA Regulations

Extended statutory enrolment deadline for Reporting Financial Institutions.

Comments

The BVI US FATCA Regulations and BVI UK FATCA Regulations require enrolment of: (i) the name of the Reporting Financial Institution; (ii) categorisation of the Reporting Financial Institution (i.e. reporting status); and (iii) where registered with the IRS, its GIIN; and (iv) certain details of the Primary User of the BVIFARS portal.

Note that where no Reportable Accounts are identified under US FATCA or UK FATCA, then the Reporting Financial Institution does not need to enroll on the BVIFARS portal and does not need to make any returns.  If the Reporting Financial Institution chooses to enrol or has already enrolled on the BVIFARS portal but has no Reportable Account for the relevant period, no return needs to be submitted for such period.

29 July 2016

BVI UK FATCA Regulations

First (extended) statutory deadline for reporting to the International Tax Authority in respect of UK Reportable Accounts for the reporting period 1 July 2014 and 31 December 2015.

30 September 2016

BVI UK FATCA

Deadline for e-mailing the International Tax Authority with the filing under the Alternative Reporting Regime (ARR) for those who had elected to use the ARR prior to 30 September 2015.

2016

31 December 2016

CRS

Due diligence on pre-existing "high value" individual account holders to be completed.

2017

30 April 2017

CRS

Deadline by which a Reporting Financial Institution is required to make certain notifications as to its CRS reporting status to the International Tax Authority.

Comments

The CRS requires enrolment of: (i) the name of the Reporting Financial Institution; (ii) categorisation of the Reporting Financial Institutions (i.e. reporting status); and (iii) certain details of its Primary User of the BVIFARS portal.

31 May 2017

BVI US FATCA Regulations

Third statutory deadline (full reporting) for reporting to the International Tax Authority in respect of US Reportable Accounts for the reporting period 2016.

BVI UK FATCA Regulations

Second statutory deadline (full reporting) for reporting to the International Tax Authority in respect of UK Reportable Accounts for the reporting period 2016.

CRS

First statutory deadline for reporting to the International Tax Authority in respect of relevant Reportable Accounts under CRS for the reporting period 2016.

Comments

Note that if there are i) no US or UK Reportable Accounts under FATCA and/or ii) no Reportable Accounts under CRS identified, the Reporting Financial Institution is not required to enrol on the BVIFARS portal.  In the event that is has already enrolled, a nil return can be filed but this is not mandatory. Failure to file a positive return could result in penalties and/or enforcement action by the International Tax Authority.

As the UK is also a Reportable Jurisdiction under CRS, there is currently a requirement to report under both the BVI UK FATCA Regulations and CRS.

31 December 2017

CRS

Due diligence on pre-existing "lower value" individual account holders and pre-existing entity account holders to be completed.

Ireland

2016

30 June 2016

Ireland US FATCA Regulations

  1. FATCA reporting date deadline to the Irish Revenue Commissioners for Irish Financial Institutions in respect of US Reportable Accounts or nil returns for the 2015 year.
  2. Review of low value pre-existing individual accounts and review of pre-existing entity accounts where the account balance or value of that account exceeds $250,000 on 30 June 2014 to be completed by this date.

2016

31 December 2016

CRS

Due diligence on pre-existing "high value" individual account holders to be completed.

2017

30 June 2017

Ireland US FATCA Regulations

  1. FATCA reporting date deadline to the Irish Revenue Commissioners for Irish Financial Institutions in respect of US Reportable Accounts or nil returns for the 2016 year.
  2. First CRS reporting date deadline to the Irish Revenue Commissioners for Irish Financial Institutions for the 2016 year.

31 December 2017

CRS

Due diligence on pre-existing "lower value" individual account holders and pre-existing entity account holders to be completed.

Resources

The Maples group regularly produces client updates in relation to FATCA, serving to notify clients and professional contacts of the latest developments and to outline the impacts on various sectors.  These updates are available below and through our news feed, however you may also subscribe to our mailings if you would like to receive these updates as they happen.