FACTA REPORTING SUMMARY (9 April 2015)

 

The Cayman Islands FATCA Portal is now live and requires all reporting FFI’s (all Cayman Islands hedge funds and master funds) to register.

 

DEADLINES

 

All Cayman Islands funds (FFI’s) are required to register on the FACTA Portal (known as “AEOI Portal”– Automatic Exchange of Information).

 

  • 30 April 2015 – deadline to register the fund

 

  • 31 May 2015 – the first reports are due to be filed (see below for no U.S. Investors)

 

AEOI PORTAL

 

The AEOI portal can be accessed on THIS LINK

 

https://caymanaeoiportal.gov.ky/VizorPortal/PublicForm/PublicFormUserValidation.aspx?entity_id=

 

The majority of Cayman Islands funds have engaged their Administrator to provide FATCA services and therefore they should register the fund on the AEOI Portal. If the fund’s Administrator is not located in the Cayman Islands they may not be aware of the requirement to register before 30 April 2015 and this should be verified. Alternatively the fund may have someone from the Manager or a director register the fund on the portal.

 

LETTER OF AUTHORITY REQUIRED FOR AEOI PORTAL

 

In order to register on the AEOI portal all parties (including the Administrator or other person) require a letter confirming the authority of the person making the registration application. We can provide a sample letter upon request.

 

NO U.S. INVESTORS

 

Previously it was thought even where a Cayman Islands hedge fund had no US investors that it would still be required to file a ‘zero report’ on the Cayman Islands FATCA portal. However the Cayman Islands Government have announced:

 

19 March 2015:

“ The Ministry has received Cabinet approval to amend the mandatory nil return requirement under the Regulations. The nil return requirement in Regulations 8(2) and 6(2) of the US and UK Regulations respectively, will be amended to be non-mandatory. However, there will be the facility for financial institutions to submit nil returns via the Portal should they so wish. Financial institutions with no reportable accounts will still need to complete the notification requirement via the AEOI Portal.”

 

A copy of the actual Cayman Islands Government announcement can be found HERE.