This memorandum addresses a private investment fund’s obligation to (i) renew its FFI Agreements with the Internal Revenue Service (“IRS”) and (ii) comply with the Common Reporting Standard (“CRS”) and FATCA in the Cayman Islands.

1. Certain registered foreign financial institutions (“FFIs”), including private investment funds, that have entered into an FFI Agreement must renew their FFI Agreements with the IRS by October 24, 2017. Failure to renew can result in a fund losing its status as a participating FFI or as a Model 2 FFI, causing its GIIN to be revoked and possibly subjecting the fund to FATCA withholding tax on certain U.S. source income.An FFI organized in a jurisdiction that has entered into a Model 1 IGA with the United States, such as the Cayman Islands, the British Virgin Islands, Ireland or Luxembourg, is not required to renew its FFI Agreement. An FFI established in Bermuda must renew its FFI Agreement to remain compliant with FATCA.
2. The Caymans Islands has further extended the deadline for FATCA and CRS reporting for 2016 to August 31, 2017, which has been announced as the final extension of these deadlines. Cayman Islands financial institutions should complete their reports as soon as possible, as there may be delays and technical difficulties due to high traffic on the Cayman AEOI portal. The Cayman AEOI portal will be taken offline at 4:00 p.m. (Eastern time) on August 31, 2017.

If you are unsure about your FFI Agreement renewal obligations or your FATCA or CRS reporting obligations, please contact Brett R. Cotler, an associate in the tax group (212-574-1269), or your regular Seward & Kissel attorney contact.

For additional information on recent tax developments, please one of the attorneys listed below.

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If you have any questions regarding the matters covered in this partners and counsel listed below or your primary attorney in this memo, please contact any of the partners and counsel listed below or your primary attorney in Seward & Kissel’s Investment Management Group.