By Gonzalo Jalles, CEO, Cayman Finance
As you probably have seen in the media and possibly in one of many of our responses and articles, FATCA is not only here to stay but being expanded.
It is clear, at the minimum, we are moving towards a new global standard of automatic exchange of information.
We have gone from pretty basic automatic reporting of only the year-end balance and based on the main account holder (EUSD) to a system where balance and income of all kinds has to be reported, based not on the account holder but on the ultimate beneficiary or any suspicion the ultimate beneficiary might be from a certain country.
The cost of implementing such a system is not to be underestimated, and the complexities of trying to produce a new international standard will keep officials and Cayman Finance busy for many months of years to come. The good news if any is that Cayman has taken a lead role, and we expect to be engaged in the discussions to come in implementing the G5 pilot.