Most Read Contributor in Cayman Islands, September 2016
With the benefit of continued local and international engagement
with industry, and with international regulatory bodies; as well as
specific discussions with the UK, the Cayman Islands continues to
enhance its system of sharing beneficial ownership information, in
order to more effectively collaborate globally with law enforcement
and tax authorities in the fight against serious crime.
Implications from the current "Panama Papers"
disclosure have further amplified the need for this global
collaboration, but in accordance with accepted international
standards in order to underpin confidence in the conduct of
There currently are two main sets of work in Cayman's
programme. The first set is a series of changes, which will begin
to be enacted in June this year, to further strengthen Cayman's
legislative and regulatory framework. Overall, the enhancement
programme will include amendments to key pieces of legislation,
including beneficial ownership provisions; the elimination of
bearer shares, which have been immobilised in Cayman since the year
2001; and amendments to the Confidential Relationships and
Since summer 2015, a working group led by the Ministry of
Financial Services, and including representatives from a cross
section of Cayman's financial services industry, has been
working to examine existing legislation and to recommend these
enhancements to Cayman's Government, said the Minister of
Financial Services Wayne Panton.
'These amendments are in keeping with our action plan, which
was publicised in June 2013 immediately following the UK's
chairing of the G8 Summit, to prevent the misuse of companies and
legal arrangements', he said.
They also build on Cayman's existing mechanisms for sharing
information for tax purposes, including the sharing of beneficial
ownership information. These mechanisms, such as tax information
exchange agreements; the Multilateral Convention on Mutual
Administrative Assistance in Tax Matters; the double tax
arrangement with the UK, allow for the sharing of information with
more than 90 jurisdictions.
In addition, Cayman automatically shares information with the US
and UK, for FATCA purposes; and is committed to the OECD's
Common Reporting Standard along with 95 other jurisdictions,
including the majority of G20 countries.
For the second set of work, Minister Panton noted that Cayman
has been in dialogue with the UK in relation to the UK's
request for a custom UK/Cayman mechanism for information
'Beneficial ownership is a major initiative for the UK Prime
Minister, and we support him in the efforts to combat serious
crime', he said. Minister Panton also noted in February this
year, the UK accepted Cayman's invitation to visit and discuss
Cayman's system of sharing beneficial ownership information
with law enforcement. This led to Cayman and the UK working
together on a joint commitment, which outlines the agreement
between the two governments regarding the enhanced sharing of
beneficial ownership information.
'We are pleased that the proposed joint commitment
recognises that Cayman's proposed enhancements to our current
beneficial ownership regime represent a viable alternative to the
UK's approach of a central register. This affirms our
longstanding adherence to implementing international standards in a
way that is effective and appropriate for our jurisdiction', he
Minister Panton thanked Cayman's financial services industry
for supporting Government's efforts to further strengthen its
system, saying it demonstrates industry's willingness to comply
with globally accepted and practiced regulatory standards.
'With our decades of engagement with international
initiatives, and our current programme for further enhancements,
Cayman clearly is collaborating and cooperating with all countries
that adhere to global standards for the sharing of
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
On the 9 September 2016 the MFSA issued feedback to its consultation of the 1 April 2016 in relation to intra-group loans.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).