Most Read Contributor in Cayman Islands, September 2016
Before the UK's Financial Conduct Authority (FCA) published
its list of 'high risk countries' on 18 July, the Cayman
Islands Government had written to authority officials to officially
request a justification of the FCA's methodology, or an
Government sent the letter to the FCA on 8 July, after it
learned days earlier that this list existed with Cayman on it and
that it was to be released following an FOI request, said Minister
of Financial Services Wayne Panton.
'Government is astounded that the UK would put Cayman on the
list, as both Cayman and the UK have been rated equally in the
OECD's 2013 Global Forum on Transparency and Exchange of
Information for Tax Purposes rankings', he said, noting that
Cayman also ranked higher than most of the G8 countries.
'Furthermore, there are areas in which Cayman has been ahead
of the UK for more than a decade – for example, collection of
KYC information on legal structures', the Minister said.
He added that Government questions the FCA's motive for
including Cayman on the list, particularly in light of consistent
third-party acknowledgements of the robustness of Cayman's
'It defies logic and the facts', he said. 'However,
regardless of the FCA's motive, Government must deal with this
matter in a responsible manner. Matters of diplomacy are often
difficult to conduct in the public sphere. While Government wants
to be in the position of airing important matters, such as this
one, to the public at an early stage, we do have to assess whether,
on balance, the interests of our country is better served by
attempting to resolve such matters quietly'.
Minister Panton said that although the list is not a 'black
list', it does have reputational implications.
'We take this matter seriously. Having recently received the
FCA's disingenuous response, rest assured that Government is
considering all options available to us, including judicial review
which will seek to reverse the FCA's decision to include Cayman
on the list'.
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On the 9 September 2016 the MFSA issued feedback to its consultation of the 1 April 2016 in relation to intra-group loans.
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