Already recognised by the Organization for Economic Cooperation
and Development (OECD), the International Monetary Fund (IMF) and
other international bodies for its transparency and standards
consistent with those of other major developed countries, the
Cayman Islands1 is acknowledged as a first class
jurisdiction for conducting international business.
In a press release dated 11 May 2016, the Cayman Islands
government has now confirmed a number of steps as a result of
constructive discussions with the UK government,
a willingness to commence discussions with those jurisdictions
who are participating in the G5 initiative (for the exchange of
beneficial ownership information with law enforcement agencies) on
entering into bilateral agreements with the Cayman Islands, similar
to the Exchange of Notes currently in place with the UK;
the repeal of The Confidential Relationships (Preservation) Law
(the "CRPL") by September 2016.
The CRPL will be replaced by The Confidential Information
Disclosure Law, which offers more understanding and definition with
regard to the mechanisms in place for sharing confidential
information with the appropriate authorities;
acknowledging privacy as a basic human right, introducing new
data protection legislation in September. This legislation
will be on par with what is in place in the European Union;
the abolishment of bearer shares.
These measures demonstrate the Cayman Islands' continued
efforts to comply with and promote transparency through close
collaboration and compliance with the relevant global regulatory
bodies, tax authorities and law enforcement agencies in line with
international standards, while simultaneously respecting the
legitimate right to privacy of law abiding clients.
The Cayman Islands has agreements to share tax information with
authorities in nearly 90 other countries, including the US under
FATCA, and is in the "early adopter" group for the Common
Reporting Standard, the OECD's global tax information exchange
On the last round of FATF mutual evaluations the Cayman Islands
ranked as one of the most robust in the world for AML compliance,
ranking equivalent to or in some cases higher than larger nations
such as the UK, Germany and France and a host of other EU and
1 The Cayman Islands is a member of the Caribbean Financial
Action Task Force (CFATF), is a Financial Action Task Force (FATF)
compliant jurisdiction and has accepted the FATF Forty
Recommendations on the Prevention of Money Laundering and Nine
Special Recommendations on Countering Terrorist
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Probably the most significant change from previous practice in Guernsey law under the Companies (Guernsey) Law 2008, which came into effect on the 1 July 2008, was the consignment to history of the concept of capital maintenance, which was discarded in favour of a solvency model as the basis of a company’s ability to pay distributions and dividends.
Please find attached our latest Appleby report which provides a snapshot of data in relation to petition filings and resultant court orders in six of our offshore jurisdictions.
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