Cayman Islands Signs FATCA IGA With US

Further to our prior client updates on the US Foreign Account Tax Compliance Act ("FATCA"), we are pleased to confirm that on 29 November 2013 the Cayman Islands signed a Model 1(b) (i.e. non-reciprocal) intergovernmental agreement with the United States ("US IGA"). 

The governments have also agreed to replace the existing bilateral tax information exchange agreement entered in 2001 with an updated version, addressing the automatic information exchange requirements introduced by the US IGA and FATCA. 

The Cayman Islands government's release can be found here. 

A copy of the US IGA can be found here. 

Although the US IGA has been executed, it will still need to be brought into force in both jurisdictions in accordance with applicable protocols, before coming into effect. Enabling legislation is in the process of being drafted for the Cayman Islands, which will assist in removing any issues of confidentiality when complying with reporting requirements.