The complexity and scope of regulatory requirements have increased exponentially in Cayman in recent years – meaning it can be all too easy for funds and their advisors to lose track of key deadlines and the associated reporting obligations.

On top of this, the Cayman Islands Monetary Authority (“CIMA”) is now able and willing to issue fines for missing deadlines and regulatory filings – as evidenced in its landmark C$4.2m fine to one of Cayman’s largest corporate service providers for breaches of Anti Money Laundering (AML) regulations this May.

This tough stance was reinforced in rhetoric used by CIMA more recently. In June, it issued a notice reminding all firms “carrying out Relevant Financial Business” under the Proceeds of Crime Act (2020 Revision) of the duties and responsibilities of Anti Money Laundering Officers – an issue we have previously addressed here.

To help stay on top of developments, here at Paradigm Governance Partners, we have developed a handy guide of upcoming deadlines to help our clients and partners as well as AML Officers far and wide, stay on top of things.

CRS / FATCA reporting

The Department for International Tax Cooperation (DITC) of the Cayman Islands issued consolidated and revised versions of its FATCA and common reporting standard (CRS) guidance. A number of key dates have just passed. July 31, 2021, was the deadline for 2019/2020 CRS reporting, the CRS filing declaration and FATCA reporting. The key deadline coming up is the submission of the 2019/2020 CRS compliance form by September 15, 2021.

CIMA deadline extension for private funds

In April 2021, CIMA issued a notice regarding the fund annual return (FAR) filings for private funds registered under the Private Funds Act. The FAR form will usually be filed within six months of a private fund’s financial year end. However, for private funds with a  December 31, 2020 financial year end, there has been an extension to the filing deadline until  September 30, 2021. The deadline for this has now been extended to October 31, 2021.

CIMA issued a further notice on August 30, 2021, confirming that the Private Funds Related Fund Entity (RFE) form is now available and can be accessed via the Authority’s Regulatory Electronic Forms Submission portal (REEFS). The filing due date of the RFE form for private funds with a 2020 financial year-end, as well as 2021 year-ends up to March 31, 2021, is October 31, 2021. The filing due date of the RFE form for private funds with financial year-ends of April 30, 2021, and later will be 6 months following such financial year-end.

CIMA Inspections of SIBA Registered Persons

No deadlines or timelines have been released for this process yet, but CIMA is in the midst of undertaking a programme of inspecting registered persons under the Securities and Investment Business Act (SIBA). In particular, according to a circular sent in December 2020, they are examining the development and maintenance of AML/CFT policies including outsourced functions; customer due diligence and ongoing monitoring programmes; employee training and awareness; oversight of the compliance function by the board; internal reporting policies; and record keeping policies. This partly includes completing a self-assessment questionnaire.

Economic Substance Filings

These are now permitted for 2020 Economic Substance Notification (ESN) year. An ES Return with respect to the 2019 ESN Year was due on April 30, 2021, which was itself an extension on the normal requirement of a return within 12 months of their FYE date. The portal is now accepting returns for the 2020 ESN Year. For entities with an FYE date of May 1, 2020, onwards, the reporting date remains 12 months after that entity’s FYE date.

Regulatory deadlines for Q2 and Q3 2021

The complexity and scope of regulatory requirements have increased exponentially in Cayman in recent years – meaning it can be all too easy for funds and their advisors to lose track of key deadlines and the associated reporting obligations.

But with the Cayman Islands Monetary Authority now able and willing to issue fines for missing deadlines and regulatory filings, here at Paradigm Governance Partners, we developed a one-page handy guide to upcoming deadlines to help our clients and partners stay on top of things. Click here to download the PDF.