Rating: On Track
The Cayman Islands’ implementation of the AEOI Standard is on track with respect to exchanging the information effectively in practice, including in relation to sorting, preparing and validating the information (SR 2.4), correctly transmitting the information in a timely manner (SRs 2.5 – 2.7), and providing corrections, amendments or additions to the information (SR 2.9). The requirements in relation to the receipt of the information (SR 2.8) have not been assessed as the Cayman Islands exchanges information non-reciprocally, so does not receive information. The Cayman Islands is encouraged to continue its implementation process accordingly, to ensure its ongoing effectiveness.
SR 2.4 Jurisdictions should sort, prepare and validate the information in accordance with the CRS XML Schema and the associated requirements in the CRS XML Schema User Guide and the File Error and Correction-related validations in the Status Message User Guide (i.e. the 50000 and 80000 range).
Findings:
Feedback from the Cayman Islands exchange partners did not raise any specific concerns with respect to their ability to process the information received from the Cayman Islands and therefore with respect to the Cayman Islands implementation of these requirements. More generally, one of the Cayman Islands’ exchange partners reported rejecting more than 25% of the files received, due to the technical requirements not being met. This is broadly in line with the general experience of other jurisdictions and has improved over time. It was noted that the Cayman Islands has already successfully addressed the issue.
Based on these findings it was concluded that the Cayman Islands is fully meeting expectations in relation to sorting, preparing and validating the information. The Cayman Islands is encouraged to continue its implementation process accordingly, to ensure its ongoing effectiveness.
Recommendations:
No recommendations made.
SR 2.5 Jurisdictions should agree and use, with each exchange partner, transmission methods that meet appropriate minimum standards to ensure the confidentiality and integrity of the data throughout the transmission, including its encryption to a minimum secure standard.
Findings:
In order to put in place an agreed transmission method that meets appropriate minimum standards in confidentiality, integrity of the data and encryption for use with each of its exchange partners, the Cayman Islands linked to the CTS.
Based on these findings it was concluded that the Cayman Islands is fully meeting expectations in relation to agreeing and using appropriate transmission methods with each of its partners. The Cayman Islands is encouraged to continue to ensure the ongoing effectiveness of its implementation.
Recommendations:
No recommendations made.
SR 2.6 Jurisdictions should carry out all exchanges annually within nine months of the end of the calendar year to which the information relates.
Findings:
Feedback from the Cayman Islands exchange partners did not raise any concerns with respect to the timeliness of the exchanges by the Cayman Islands and therefore with respect to the Cayman Islands implementation of this requirement.
Based on these findings it was concluded that the Cayman Islands is fully meeting expectations in relation exchanging information in a timely manner. The Cayman Islands is encouraged to continue to ensure the ongoing effectiveness of its implementation.
Recommendations:
No recommendations made.
SR 2.7 Jurisdictions should send the information in accordance with the agreed transmission methods and encryption standards.
Findings:
Feedback from the Cayman Islands’ exchange partners did not raise any concerns with respect to the Cayman Islands’ use of the agreed transmission methods and therefore with the Cayman Islands’ implementation of this requirement.
Based on these findings it was concluded that the Cayman Islands is fully meeting expectations in relation to sending the information in accordance with the agreed transmission methods and encryption standards. The Cayman Islands is therefore encouraged to continue to ensure the ongoing effectiveness of its implementation.
Recommendations:
No recommendations made.
SR 2.8 Jurisdictions should have the systems in place to receive information and, once it has been received, should send a status message to the sending jurisdictions in accordance with the CRS Status Message XML Schema and the related User Guide.
It should be noted that, as the Cayman Islands exchanges information on a non-reciprocal basis and does not receive information, it is not required to have in place systems to receive the information and provide status messages. SR 2.8 has therefore not been assessed in this case.
Findings:
Not applicable.
Recommendations:
Not applicable.
SR 2.9 Jurisdictions should respond to a notification from an exchange partner as referred to in Section 4 of the Model CAA (which may include Status Messages) in accordance with the timelines set out in the Commentary to Section 4 of the Model CAA. In all other cases, jurisdictions should send corrected, amended or additional information received from a Reporting Financial Institution as soon as possible after it has been received.
Findings:
The Cayman Islands appears ready to respond to notifications and to provide corrected, amended or additional information in a timely manner and no such concerns were raised by the Cayman Islands’ exchange partners and therefore with respect to the Cayman Islands’ implementation of these requirements.
Based on these findings it was concluded that the Cayman Islands appears to be meeting expectations in relation to responding to notifications from exchange partners and the sending of corrected, amended or additional information. The Cayman Islands is encouraged to continue to ensure the ongoing effectiveness of its implementation.
Recommendations:
No recommendations made.