• Service: Tax, International Tax
  • Type: Regulatory update
  • Date: 3/13/2014

Cayman Islands - FATCA “responsible officer” role 

March 13:  A release from the Ministry of Financial Services, Commerce and Environment of the Cayman Islands states that: (1) the U.S. concept of “responsible office” with respect to FATCA* will not be transposed into Cayman procedures; and (2) a Cayman implementing framework for FATCA will enact specific compliance obligations and responsibilities.

*FATCA refers to the U.S. legislation, Foreign Account Tax Compliance Act.

The March 2014 release [PDF 166 KB] was issued by the FATCA Working Group, and provides:

  • The Model 1 intergovernmental agreement (IGA) signed between the Cayman Islands and the United States does not specifically require or envisage a “responsible officer” role.
  • The concept of the “responsible officer,” under U.S. Treasury regulations, will not be imported into the Cayman Islands domestic legal framework.
  • While the “responsible officer” title is a feature of the IRS FATCA portal registration process, registration by a financial institution in a Model 1 IGA jurisdiction does not invoke the U.S. Treasury concept of a “responsible officer.”
  • The purpose of the registration process for a Model 1 IGA financial institution is to apply for a Global Intermediary Identification Number (GIIN) and to authorize one or more point of contacts for the reporting financial institution.
  • The submission of the registration on behalf of an entity is to be made by authorized persons who certify to the best of their knowledge and belief that the information is accurate and complete, and that the financial institution will comply with its FATCA obligations under the Cayman legislative framework.
  • The Cayman implementing framework for FATCA will enact specific compliance obligations and responsibilities with domestically enforceable compliance rules and penalties.

For more information, contact a KPMG tax professional in the Cayman Islands:

David Conen

+1 345 914 4356

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