OVERVIEW

The Maples Group is uniquely placed to provide legal advice and administrative solutions to clients on all aspects of the Automatic Exchange of Financial Account Information ("AEOI") due diligence and reporting regimes such as FATCA and the OECD Standard for Automatic Exchange of Financial Account Information – Common Reporting Standard ("CRS") with respect to British Virgin Islands, Cayman Islands and Irish financial institutions.

The British Virgin Islands, the Cayman Islands and Ireland have entered into inter-governmental agreements with the United States (the "US IGAs") to give effect to the US Foreign Account Tax Compliance Act ("US FATCA") and a multilateral competent authority agreement (the "MCAA") to implement CRS.  The British Virgin Islands and the Cayman Islands have also entered into inter-governmental agreements with the United Kingdom (the "UK IGAs") in broadly similar terms to the US IGAs to improve international tax compliance ("UK FATCA"). The UK is also a participating jurisdiction under CRS therefore it is expected that UK FATCA will be subsumed by CRS by the end of 2017. AEOI is the collective term used to refer to US FATCA, UK FATCA and CRS.

Each of the British Virgin Islands, the Cayman Islands and Ireland has passed laws (the "AEOI Laws") to give effect to their AEOI commitments.  Under the AEOI Laws, all "Financial Institutions" will be required to comply with the relevant registration, due diligence and reporting requirements, except to the extent that they can rely on an exemption that allows them to become a "Non-Reporting Financial Institution" with respect to one or more of the AEOI regimes.  The AEOI Laws require each Financial Institution to, amongst other things (i) register with the United States Internal Revenue Service to obtain a Global Intermediary Identification Number (in the context of the US IGA only), (ii) conduct due diligence on its accounts to identify whether any such accounts are considered "Reportable Accounts", and (iii) report information on such Reportable Accounts to the local fiscal authority. 

Account holders in such Financial Institutions will be required to provide certain personal financial information, including certifications as to such account holder's global tax residencies and tax identification numbers, to the Financial Institution.  The Financial Institution's compliance with the AEOI Laws may result in the disclosure of the account holder's financial information to the local fiscal authority which will transmit such information to the overseas fiscal authority relevant to a reportable account annually on an automatic basis.

The term "Financial Institution" catches entities that are depository institutions, custodial institutions, investment entities and specified insurance companies.  Depository institutions and custodial institutions are largely self-explanatory terms, and specified insurance companies will mostly be long-term insurers.  Investment entities is a term defined very broadly and catches most types of investment fund, investment managers and advisors, and other entities that might be service providers in fund management world.  An entity that is not a Financial Institution will be a non-financial entity and out of scope of the AEOI Laws although if that entity is an account holder of a Financial Institution it may in certain circumstances be required to confirm to such Financial Institution details of its controlling persons.  If in doubt, please take appropriate legal advice as to whether an entity is in scope and any related compliance obligations.

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EXPERTS

The Maples Group provides constructive and insightful advice to a range of clients, including investment managers, collateral managers, fund administrators, trustees and investment banks, offering flexible and cost effective solutions that can be tailored to ensure clients meet the necessary requirements.

We can assist clients on all aspects of AEOI, with services including:

  • providing British Virgin Islands, Cayman Islands and Irish legal advice or assistance in relation to the potential application of FATCA and CRS, including entity classification, local and foreign tax authority registration and notification requirements, availability of reporting exemptions, self-certification and due diligence requirements.
  • drafting or reviewing language for incorporation into offering materials, constitutional and other documents, where relevant.
  • drafting or reviewing self-certification forms, sponsored entity agreements and delegation agreements.
  • drafting or reviewing policies and procedures.
  • registering a client with the IRS and obtaining a Global Intermediary Identification Number ("GIIN"), and/or registration, notification and liaison with local authorities, as applicable.
  • classification, validation and remediation of pre-existing accounts.
  • onboarding new accounts to ensure required data is captured, and obtaining forms and due diligence documentation for validation up front to facilitate compliance.
  • preparation and filing of reports that are compliant with applicable legal requirements.
  • sponsoring entity services - taking responsibility for FATCA compliance on behalf of the client, including performing all initial and ongoing due diligence to identify any reportable accounts, GIIN registration and reporting where applicable.

CONTACTS

Cayman Islands  Michelle
Bailey Senior Vice President - Regulatory Services

Dublin  David
Burke Of Counsel

Cayman Islands  Christopher
Capewell Partner

Dublin  Lynn
Cramer Partner

Cayman Islands  Tim
Dawson Partner

London  Heidi
de Vries Partner

Cayman Islands  Tim
Frawley Partner

Singapore  Michael
Gagie Managing Partner

Cayman Islands  Patrick
Head Partner

London  Harjit
Kaur Partner

Cayman Islands  Martin
Livingston Consultant

Cayman Islands  Scott
Macdonald Partner

British Virgin Islands  Richard
May Managing Partner

Cayman Islands  James
Turner Associate

Cayman Islands  Christie
Walton Partner

Cayman Islands  Karen
Watson Regional Head of Fund Services - Americas

RESOURCE HUB

The Maples Group regularly produces client updates in relation to FATCA, serving to notify clients and professional contacts of the latest developments and to outline the impacts on various sectors. These updates are available below and through our news feed, however you may also subscribe to our mailings if you would like to receive these updates as they happen.