Common Reporting Standards Come into Force in BVI

The so called Common Reporting Standards, developed by the OECD, came into effect from January 1, 2016 in many jurisdictions, including the British Virgin Islands, the Cayman Islands, Bermuda, Guernsey, and Jersey, providing for the exchange information between tax authorities. According to the publication by Ropes & Gray, in the countries which accepted this standard from the beginning of the year and are part of the “Early Adopters Group”, all persons opening new accounts are required to provide “self-certifications” allowing financial institutions to perform due diligence and define their tax residency. The first exchange of information as regards certain account holders is expected to take place in 2017.

All investment funds in the BVI and other Early Adopter jurisdictions should have updated subscription procedures for new investors admitted on or after January 1, 2016, and should be ready to gather additional information from all existing investors.