Automatic Exchange of Information
Automatic Exchange of Information refers to an international standard through which international tax authorities can exchange data in an effort to reduce global tax evasion and increase tax transparency.
There are two information sharing frameworks that Cayman National will use to exchange this information, these are known as FATCA & CRS.
FATCA (The Foreign Account Tax Compliance Act) was introduced by the United States as part of the HIRE Act and requires Financial Institutions outside of the United States to register and report on Financial Accounts held in non-US jurisdictions by Specified US Persons and certain US controlled foreign entities.
CRS (The Common Reporting Standard) was created by the OECD (Organisation for Economic Co-operation and Development) to put a global model of automatic exchange of information into practice and requires Financial Institutions to report data on accounts held by tax residents of Reportable Jurisdictions and certain entities controlled by such tax residents.
To comply with the requirements of CRS & FATCA, you will be asked to complete a Self-Certification form to establish your tax residency and citizenship, as part of our client take-on process and also upon there being any subsequent changes to your circumstances which may have an impact on your tax status.
Please note, Cayman National are unable to provide tax advice and therefore we recommend that you contact a professional and independent tax adviser to discuss your personal situation and reporting obligations.