FATCA In The Cayman Islands

The serious doubts expressed by many, most recently Professor Christians of McGill University, as to the Constitutional authority cited by the US Treasury¹ in support of each Inter Governmental Agreement (an "IGA") entered into by it on behalf of the United States government to implement FATCA have been rendered practically irrelevant in so far as Cayman Islands legal entities, including all companies, funds, partnerships and trusts, are concerned by the passage, with effect from 1st July 2014, of the enabling amendments to the relevant Cayman Islands legislation. These extensive revisions to the Cayman Islands Tax Information Authority Law 2014 and attendant Regulations introduce into Cayman Islands domestic law, the provisions of the Model 1(B) IGA with the United States (signed on 29th November 2013) and the similar (not constitutionally doubtful) IGA signed with the United Kingdom on 5th November 2013.