Most Read Contributor in Cayman Islands, September 2016
I am pleased to ask industry, clients and the general public for
their input regarding beneficial ownership of Cayman
Islands-registered companies. Simply put, the purpose of this
consultation is to ensure appropriate transparency in our business
environment – in other words, it is to ensure that we have
appropriate mechanisms to effectively maintain information on who
owns and controls Cayman-registered companies, and that this
information is readily available to appropriate authorities.
Transparency is important, on a local and global scale, because
it is a means to mitigate financial crimes. It protects investors,
as well as public revenue. Transparency also generates public trust
in the integrity of our systems, and increases confidence in the
stability of our jurisdiction.
This consultation covers sections 2 and 3; and section 6 of the
Cayman Islands Action Plan to Prevent the Misuse of Companies and
Legal Arrangements, which is further explained in this
Not all aspects of the action plan require public consultation
at this time. However, it is essential that Government hears your
opinions on the sections listed above, because the outcomes could
affect our financial services providers, and every person who has a
company – whether resident, non-resident, exempt, or foreign
– that is registered in the Cayman Islands. I therefore
strongly encourage industry, and the owners of Cayman-registered
businesses, to provide feedback.
To members of the general public, I note that while you may not
have a Cayman-registered business, you nevertheless benefit from
the government services that are provided with the public revenue
that these companies generate. Therefore, your voice also is
Regarding the action plan, Government released it on 18 June
2013, in response to initiatives stemming from the UK-chaired G8
Summit. The plan commits Cayman to a review of our financial
services regime, to ensure that business conducted in our Islands
continues to meet international standards on combating money
laundering, and the financing of terrorism and proliferation.
While Cayman's robust response to such financial crimes has
been recognised by third-party global bodies such as the Financial
Stability Board and the Financial Action Task Force, we will
continue to evaluate further proposed changes in light of the
intended benefits to law enforcement and tax authorities, the costs
of implementation, and the potential impact on our competitive
Again, this is why your input is important. Our commitment to
consult with industry, clients and the public strongly indicates
the current Government administration's position regarding
maintaining and wherever possible, enhancing, the strength of our
We recognise Cayman's role as a global business centre, and
our responsibility to act in a manner that supports internationally
accepted standards, as well as promoting a level playing field
across all jurisdictions. Inventive criminals make it necessary for
all countries involved in global business, including Cayman, to
ensure that they do not provide safe havens for any kind of illegal
On behalf of my Government colleagues, I sincerely thank you for
your input on this consultation. We look forward to receiving your
submission by Friday, 31 January 2014.
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