Beyond FATCA - Additional International Tax Compliance Obligations Announced

On October 29th, 2014 in Berlin, Germany, the Cayman Islands and 50 other jurisdictions signed on to the OECD Multilateral Competent Authority Agreement ("MCAA") for the implementation of the automatic exchange of tax information, based on the OECD's Multilateral Convention on Mutual Administrative Assistance in Tax Matters ("Multilateral Convention").

The MCAA requires the Competent (Tax) Authorities of participating jurisdictions to collect and automatically exchange tax information prescribed by the OECD's Common Reporting Standard ("CRS"). The MCAA is similar in form and substance to the U.S. and U.K. intergovernmental agreements ("IGAs").

Cayman Islands Reporting Financial Institutions ("RFIs") such as hedge funds, private equity funds, and securitization special purpose vehicles, will now have substantially expanded international tax compliance obligations starting in 2016. They will have broader and more detailed FATCA reporting obligations pursuant to the