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Cayman Moves Forward with FATCA Compliance

Security Management

The Cayman Islands Government has announced it would adopt a Model 1 intergovernmental agreement (IGA) in response to US Foreign Account Tax Compliance Act (FATCA) and a similar arrangement would be forthcoming for further automatic exchange of information with the United Kingdom. The mechanisms of exchange are being discussed between the relevant parties and are due to be concluded imminently.

The Model 1 IGA is an agreement between governments for the exchange of information and sits alongside Cayman’s 31 other tax information exchange agreements, including that with United States (since 1990), its most recent signing with Brazil, and the 27 European Union member states under the European Union Savings Directive which has been in effect since 2004.

Said Rob Leadbetter, chairman of the Insurance Managers Association of Cayman (IMAC): “this is another demonstration of Cayman leading by example in international regulatory initiatives. Cayman has had transparency gateways with tax authorities around the world for decades and so this is just another rung in that ladder. It will ensure that Cayman remains competitive as a well-respected international financial services centre”.

The announcement was made by Hon. Minister Rolston Anglin, Minister of Finance of the Cayman Islands Government on 15 March 2013 in the Legislative Assembly. “This decision to adopt the Model 1 IGA will fortify our good standing in the global community and continue to build on the solid foundation we already have in place with our existing agreements. We will continue to take our place in the international arena and ensure that we maintain our positive and informed engagement in the rapidly developing environment of international tax cooperation”, he said.

Insurance Managers Association of Cayman (IMAC) is a non-profit organisation run by the insurance managers of the Cayman Islands. In operation since 1981, IMAC’s aim is to act as both regulatory liaison with the Cayman Islands Government and to promote the Cayman Islands as a domicile of choice for captive insurance companies. IMAC hosts the world’s largest captive insurance conference, attracting nearly 1,300 captive managers, service providers and directors annually.

Source: GRC Daily