This FAQ has been assembled as a follow-up to Global Updates issued by BBH relating to new rules that certain Cayman entities must comply with in order to meet obligations under the Common Reporting Standard (CRS). BBH is prepared to assist impacted clients to meet this requirement as part of its AEOI Services offering.
1. What is the CRS Compliance form?
The Common Reporting Standard (CRS) Compliance Form is a new reporting requirement that forms part of the overall compliance of CRS in the Cayman Islands. The purpose of this form is to require Cayman Financial Institutions (FIs) to provide additional information annually to ensure the effective implementation of, and compliance with, reporting and due diligence procedures in accordance with the CRS.
2. Who is impacted/required to submit the form?
This form must be completed annually by all Cayman Islands Reporting Financial Institutions and Cayman Island Trustee Documented Trusts for the same period as their CRS returns. There are limited exceptions to this rule, e.g., investment managers and advisers that confirmed upon registration that they hold no financial accounts.
3. What is reported on the form?
The CRS Compliance Form requires Cayman FIs to provide basic demographic information about the fund and aggregate information about non-reportable accounts that are not reported during annual CRS filings. The form also asks for Cayman FIs to make certain certifications around overall compliance with CRS obligations.
4. How does this differ from the CRS reporting already taking place?
Current CRS Reporting requires Cayman FIs to provide account information on reportable persons who are tax resident in a participating CRS jurisdiction.
5. When is it due?
For the 2019 and 2020 reporting periods, the CRS Compliance Forms are due September 15, 2021. Going forward, the CRS Compliance Form will be due September 15 following each reporting year. BBH will require appropriate instruction from clients by September 1 in order to ensure operational processing can be completed.
6. How is it filed?
The form will only be available for submission via the Cayman Island’s DITC Portal and will be available as both a manual entry and bulk upload. The manual entry is completed via a smart form format. The bulk upload option is completed via a CSV file. Both the Principal Point of Contact and any Secondary Users assigned to the FI will have the ability to file this form on behalf of the FI in the DITC Portal.
7. What are the consequences of non-compliance?
The Cayman Island’s DITC may apply automatic penalties where this deadline is not met.
8. What is BBH doing to help?
BBH is prepared to assist its impacted AEOI Services clients with preparation and filing of the new CRS Compliance Form, both for tax years 2019 and 2020 (due September 15, 2021), as well as for upcoming filings for tax year 2021 and beyond.
BBH has enhanced its databases to store additional demographic data elements required by the filing, as well as enhanced its reporting systems to clearly output the necessary information regarding non-reportable accounts. Finally, BBH has developed systems to aggregate this data into the format necessary for filing with the Cayman Islands’ DITC portal.
9. What do clients with impacted Cayman FIs need to do?
Clients of BBH’s AEOI Services with impacted Cayman FIs should indicate their intention to engage BBH to perform this filing on behalf of the Cayman entities. BBH’s AEOI Services team has already been in close communication on this requirement with many clients, but clients may reach out to the contacts listed in Question 11 for more information.
10. How will the process work operationally?
BBH, in its capacity as Transfer Agent and AEOI Services provider already maintains much of the data necessary for reporting on the CRS Compliance Form. However, there are a few new data points that may need to be collected for each in-scope Cayman FI, whether it be additional demographic data, or confirmation from clients on overall compliance.
As with other AEOI reporting processes, BBH will request additional data points from impacted clients, build sample files for review, and after this review is complete, file with the DITC based upon client instruction.
11. How do I learn more?
For more information, please reach out to your designated AEOI Services point of contact, Client Services Manager, Relationship Manager, or to Peter Brown (firstname.lastname@example.org) or Anna Shill (email@example.com). For general information regarding AEOI Services, clients may also refer to the AEOI Services Operating Guide found in BBH’s Infuse™ portal.