The Cayman Department of International Tax Cooperation (DITC) published a February 2022 Updates Bulletin, which includes a number of timely items.
A reminder to DITC users that they should review the DITC website for pertinent information prior to e-mailing or contacting the DITC directly. The website includes helpful information for Cayman Financial Institutions (FIs).
Important new information regarding how to deactivate an FI from the DITC Portal. In order to make this request, FIs must complete all reporting obligations and the Principal Point of Contact (PPoC) of the FI must complete a form on the DITC Portal.
Check out pages 24-25 of the DITC Portal User Guide here: https://www.ditc.ky/wp-content/uploads/DITC_Portal_User_Guide.pdf.
Further, the PPoC must provide evidence of dissolution, or where an entity no longer considers itself an FI, a letter substantiating this claim. The PPoC also must indicate the contact information of the person who will retain the records for the FI for a period of six years following date of deactivation from the DITC portal.
Alignment between the validation rules in the DITC Portal for submitting corrections to previously reported Common Reporting Standard (CRS) data and the Organisation for Economic Co-operation and Development's (OECD's) Common Reporting Standard User Guide. The changes are specific to the technical specifications of the Reporting FI element, where the data related to the Reporting FI has not changed, but Account reports need to be corrected or deleted.
Updated list of 2021 CRS Reportable Jurisdictions (with reports due in 2022) now includes Jamaica, Kenya, and Morocco. Kuwait has been removed from this list.
Check out the list here: http://gazettes.gov.ky/portal/pls/portal/docs/1/13140776.PDF
A reminder to each Cayman Islands company, partnership, and trust, and its directors or equivalent fiduciaries, that they must confirm the entity classification for purposes of CRS and FATCA. The DITC continues to match the CRS and FATCA notification data with other data sources, including the Economic Substance Notifications, Cayman Islands Monetary Authority (CIMA) licenses and registrations, General Registry nature of business classifications, and the IRS GIIN registration list. FIs that fail to notify the DITC of their correct classification under the Regulations will be subject to DITC compliance and enforcement action where they discover a misclassification. The DITC has already started to contact registered offices of these entities for an explanation of classification.
Updates related to Economic Substance Reporting.
Check out the February 2022 Updates Bulletin here: