Is Cayman Islands Model 1 IGA?

Formalising its commitment to transparency once again, the Cayman Islands Government has signed a FATCA Model 1 intergovernmental agreement (IGA) with the United States that paves the way to automatic exchange of tax information under the US Foreign Account Tax Compliance Act (FATCA).

What is IGA in FATCA?

What is an Intergovernmental Agreement or IGA? An IGA is a bilateral agreement between a country’s government and the U.S. government that facilitates compliance with FATCA. The model agreements enable FIs in the designated jurisdictions to comply with FATCA, especially where privacy laws exist.

What is the difference between IGA Model 1 countries and IGA Model 2 countries?

Government/FFI Impact: Under the Model 1 IGA, enforcement is to be carried out by the FATCA Partner in the first instance. Under the Model 2 IGA, the FATCA Partner does not serve an enforcement role.

Is Canada a Model 1 IGA?

Countries with a Model 1 or Model 2 IGA already signed and in effect include: Australia (4-28-2014) Austria (4-29-2014) Canada (2-5-2014)

What is a Model 1 IGA?

The term Model 1 IGA means an agreement or arrangement between the United States or the Treasury Department and a foreign government or one or more agencies thereof to implement FATCA through reporting by financial institutions to such foreign government or agency thereof, followed by automatic exchange of the reported …

Is IGA in the USA?

IGA, Inc. is an American chain of grocery stores that operates in more than 30 countries. Unlike the chain store business model, IGA operates as a franchise through stores that are owned separately from the brand. It was founded in the United States as the Independent Grocers Alliance in 1926.

What is IGA jurisdiction?

Model 2 IGA: The partner jurisdiction agrees to direct and enable all relevant FFIs located in the jurisdiction to report specified information about their U.S. accounts directly to the IRS.

Is a reporting Model 1 FFI a participating FFI?

For an FFI to maintain its status as a participating FFI, the FFI agreement requires that each member of the FFI group other than an exempt beneficial owner maintains one of the following chapter 4 statuses: participating FFI (including a reporting Model 2 FFI), limited FFI, registered deemed- compliant FFI (including …

What is an IGA FFI?

The term FFI or foreign financial institution has the meaning set forth in § 1.1471-5(d). The term financial institution has the meaning set forth in § 1.1471-5(e) and includes a financial institution as defined in an applicable Model 1 or Model 2 IGA. (51) Flow-through entity.

What does Reporting Model 1 FFI mean?

“Reporting Model 1 FFI” means an FFI or branch of an FFI that is treated as a reporting financial institution under an applicable Model 1 IGA and that has registered with the IRS to obtain a GIIN.