Some 15,000 of Cayman’s financial institutions have registered with the Internal Revenue Service (IRS) in the United States, according to the Cayman Islands Banking Association (CIBA), in preparation for the US Foreign Accounts Tax Compliance Act (FACTA), which has now taken effect.
CIBA said many of the 14,800 financial institutions opted for early registration to make sure they were compliant by July 1.
“This figure represents approximately 19 percent of global FATCA registrants and is a good indication that Cayman financial institutions have either completed or close to completing their preparations for the reporting requirements of FATCA that start in 2015,” CIBA said.
Under the law, financial institutions will be required to report to the IRS information about US customers’ accounts worth $50,000 or more. Any institution withholding information would receive a 30 percent non-compliance penalty.
A note by Cayman Finance said: “These figures are a powerful testament to just how large the financial services industry is in the Cayman Islands and further demonstrate the high-level of compliance adhered to by our jurisdiction – a clear indication that Cayman is and remains one of the world’s leading international financial centres.”
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