The Automatic Exchange of Information portal will require Cayman-based financial institutions to make two submissions about their US tax resident clients this year, with the earliest due on 31 May, the first reporting deadline for FATCA.
FATCA was introduced last July and brought in requirements for foreign financial institutions to disclose all US-related information about new and existing clients to the US Internal Revenue Service, or risk facing a 30% witholding tax.
Unlike many other countries, US citizens retain their American tax duties even after leaving the country.
As well as personal details about US clients, the Cayman portal will require a financial institution to disclose its Global Intermediary Identification Number, a unique identifier that must be supplied to other financial institutions with which they maintain accounts or act as payees. It must also submit a PDF letter of authorisation.
While many jurisdictions have removed the requirement for submission of a nil return in the event there are no reportable accounts, the Cayman Islands still require the submission of a nil report. This means that all Cayman Islands institutions must file a report regardless of whether its clients have ties with America.
Last month, Jersey also launched an online portal to allow local financial institutions to register US clients under FATCA.
