Cayman Islands AEOI update

• As we approach this year's reporting deadlines, there must be a focus on data quality.

• Recent changes to the CRS Regulations will impact deadlines and processes for the reporting due in 2027.  

• Financial institutions must consider the new principal point of contact (PPoC) obligations and appoint a Cayman based PPoC by 31 January 2027. 

• The DITC has now released the updated self-certificates.

• Outsourcing registrations and annual filing obligations to an external provider can reduce risk and exposure of compliance action and ensure high-quality and timely reporting. 

The background:

The Cayman Islands has an impressive history when it comes to the implementation of and reporting under international tax transparency regimes and was one of the first countries to commit to implementing the Common Reporting Standard (the CRS) with the first exchange in 2017.

Since 2022, the Global Forum has been conducting peer reviews on how effectively jurisdictions, including the Cayman Islands, have implemented the CRS. Cayman has been preparing for these reviews for some time; introducing the CRS Compliance Form in 2019, adopting the CRS Enforcement Guidelines in 2020 and issuing an increased number of enquiries and warnings, leading to the proactive enforcement of CRS obligations, including the issuance of breach notices, enforcement notices and financial penalties in relation to missing filings. More recently, in November 2024, the DITC announced the commencement of a programme of comprehensive reviews testing the practical compliance with the CRS obligations (i.e. CRS audits). 

In June 2023, following the first round of these peer reviews, significant amendments to the CRS were published by the OECD. These amendments were implemented in the Cayman Islands under domestic legislation in December 2025 through the Tax Information Authority (International Tax Compliance) (Common Reporting Standard) (Amendment) Regulations, 2025 (the Amendment).

The amendments are aimed at improving the operation of the CRS and also respond to developments in the digital and electronic economy, in relation to crypto-assets which were not catered for under the existing CRS reporting framework. With the exception of certain amendments coming into force on 1 January 2027, the Amendment came into force on 1 January 2026.

It should be noted that the second round of the Global Forum peer reviews are currently ongoing with the results expected later this year (2026). This round includes a more detailed assessment of effectiveness of each jurisdiction's administrative compliance framework and their exchange of information in practice with a particular focus on the quality of information reported. As we approach this years reporting deadlines – it is more important than ever that we focus on the quality of information submitted under the CRS regime.

Summary of key changes:

• Registration deadline: the deadline by which a FI must register with the DITC will change from 30 April to 31 January for entities established from 2026, with the new deadline first taking effect on 31 January 2027. For entities that become FIs in 2025, the registration deadline was 30 April 2026;

• Annual reporting deadline: the deadlines for Reporting FIs to submit the CRS annual return and CRS Compliance Form will change from 31 July and 15 September, respectively, to 30 June each year. This will take effect in respect of the 2026 reporting period, for which filing will be due by 30 June 2027;

• Local PPoC – the Amendment requires that the PPoC is resident in the Cayman Islands. Any necessary change to the PPoC must take place and be notified to the DITC by 31 January 2027; and

• Data collection - Reporting FIs must collect and report certain additional information, such as the role of controlling persons, whether an account is a 'New Account' or 'Pre-Existing Account' (as defined under the CRS), and the type of account (including if it is a joint account) as well as confirming that each investor has a valid CRS self-certification.

These updates are intended to strengthen regulatory oversight and improve the accuracy of information maintained by the Cayman Islands tax authority.

Key points to consider as we approach this year's reporting deadlines:

• Updated self-certification forms
  The DITC released the updated Entity Self-Certification Form and Individual Self-Certification Form on their website on 19 May 2025. These forms are effective 1 January 2026.

• List of participating and reportable jurisdictions
  The list of participating and reportable jurisdictions for CRS purposes continues to evolve annually. An updated list of CRS Reportable and Participating Jurisdictions was published in the Cayman Islands Gazette, Issue No. 07/2025 on Monday, 31 March 2025.

• Increased emphasis on data quality
  The international CRS effectiveness review is ongoing, contributing to increased DITC desktop reviews, audits and focus on data quality. This trend is expected to continue. A focus on data quality is critical for this reporting cycle.

• Misclassification remains a key risk
  We see many issues stemming from outdated or incorrect classifications, often identified years later. We encourage our clients to periodically review classifications and ensure rationale is carefully documented. 

• Focus on accuracy and timely reporting
  Penalty notices will replace breach notices for missed deadlines, removing the former lead in period. While penalties may be appealed, accurate and timely reporting is the most effective safeguard. Reconcile regularly between the "Entities" tab and "View Activity" tab within the DITC portal.

• Importance of accurate DITC portal information
  Ensure PPoC, Authorising Person and related details are kept current on the DITC portal. Early preparation and regular reviews help mitigate compliance risk.

• Key regulatory updates
  Service providers, fund managers and financial institutions should stay informed and keep abreast of DITC updates. Regular reviews of the DITC website, DITC bulletins and updates published on the notice board within the DITC portal are important, as these remain key communication channels used by the DITC. Further information is available on the DITC website.

• Cayman’s role in global transparency
  Cayman continues to be an active participant in OECD reporting frameworks. Maintaining strong compliance is essential to supporting our position as the leading global funds jurisdiction.
  
  

How Walkers Professional Services can help

Walkers Professional Services (WPS) provides everything from PPoC only to review of XMLs all the way to end-to-end AEOI compliance and reporting support for Cayman Islands entities, including:

• GIIN registration support;
• DITC registration and change notifications;
• Cayman Islands PPoC services;
• Investor due diligence support;
• FATCA and CRS reporting filings; 
• CRS Compliance Form preparation and filing; and
• CRS/FATCA health checks.

For further information on Walkers Professional Services’ AEOI and regulatory compliance services, please speak with your usual Walkers or WPS contact.