Welcome to the Stuarts Q4 2024 funds newsletter.
Wishing you and yours a peaceful, joyful and
prosperous new year!
In this edition, you will read about topics including:
- Regulatory Filing Dates for 2025
- FATCA and CRS Deadlines 2025
- VASP Updates
- A Guide to Navigating Comprehensive CRS Reviews in the Cayman Islands
- Updated ROC fees for 2025
- Latest Investments and Securities Figures
- REMINDER: Updated Cayman Beneficial Ownership Regime Now in Force
- Stuarts Offers Client AML and Compliance Training
- Stuarts Achieves Top Recognition in Legal500 and Chambers Rankings
- Recent Publications
- Stuarts Podcasts on Mutual Funds and Private Funds
We hope you will find the newsletter of interest.
Regulatory Filing Dates for 2025
We wish to alert clients of the 2025 regulatory filing dates for all Cayman-domiciled entities including funds, registered companies and financial institutions under the CRS and FATCA regimes and under the Economic Substance regime with the Tax Information Authority in the Cayman Islands (DITC).
Enforcement under the new beneficial ownership regime in the Cayman Islands takes effect on 1 January 2025. All clients must ensure their entities are compliant with the new regime to avoid enforcement measures.
Director registration renewals and cancellations with the Cayman Islands Monetary Authority (CIMA) should be made and paid for through CIMA's online portal by using the login credentials previously supplied upon registration.
The CRS has updated the list of Reportable Jurisdictions. It is recommended to review the Updates Bulletin regularly on the DITC website.
Should you have any questions or need assistance with your regulatory obligations please get in touch with your usual Stuarts attorney or email our Head of Banking & Regulatory, Jon McLean.
FATCA and CRS Deadlines
Cayman Islands financial institutions have until 31 July 2025 to
complete their FATCA reporting, CRS reporting and CRS filing
declaration.
Key FATCA and CRS Deadlines for 2025 are:
- 30 April 2025: Registration Deadline
- 31 July 2025: CRS Reporting
- 31 July 2025: CRS Filing Declaration
- 31 July 2025: FATCA Reporting
- 15 September 2025: CRS Compliance Form
If you require assistance, please contact our Head of Banking & Regulatory, Jon McLean.
VASP Updates
The Cayman Islands Monetary Authority ("CIMA") has changed the application form for the registration of Virtual Asset Service Providers (VASPs) through the REEFS portal. Additionally, CIMA has issued an update to the Rule and Statement of Guidance ("SoG") applicable to Virtual Asset Custodians and Virtual Asset Trading Platforms as gazetted in the Extraordinary Gazette #93/2024 on Friday, 13 December 2024
- All new VASP applications submitted on or after 13 December 2024 must be completed using the updated APP 101-84-05 form via the REEFS portal.
- Applications in progress as of 13 December 2024 may still be completed using the existing APP 101-84 form and submitted before 5:00pm on 30 January 2025.
- Applicants that are not able to submit any in-progress applications by 30 January 2025 will need to use the new form APP 101-84-05, for all future registration submissions.
Further information including the update to the Rule and SoG can be found in our article below. Should you require any assistance regarding the new VASP application form, the VASP application process, or the updated Rule and SoG please contact Jon McLean.
A Guide to Navigating Comprehensive CRS Reviews in the Cayman Islands
The Cayman Islands Department for International Tax Cooperation
(DITC) has announced the forthcoming commencement of CRS
comprehensive reviews. The guide below provides an overview of how
Cayman Islands financial institutions (FIs) can proactively prepare
and mitigate enforcement risks.
Key focus areas for the DITC during these reviews are expected to
include:
- Governance: Examining documentation that demonstrates CRS compliance, including identifying all parties and service providers involved. This ensures appropriate policies and procedures are in place for due diligence and reporting.
- Classifications: Verifying that account holders are correctly classified as reportable or non-reportable under the CRS.
- Data Quality: Reviewing controls, documentation, self-certifications, and financial statements to confirm the accuracy and completeness of reported data.
For assistance, please contact your usual Stuarts attorney or email our Head of Banking & Regulatory Jon McLean.
Updated RoC Fees for 2025
The Cayman Islands General Registry Department has released
updated annual fees for Cayman Islands entities in respect of
2025.
The full schedule can be viewed on the CI General Registry website
here
(https://www.ciregistry.ky/fees/)
Should you require any assistance, please get in touch with our corporate team
today.
REMINDER: Updated Cayman Beneficial Ownershp Regime Now in Force
The Beneficial Ownership Transparency Act, 2023
(the "BOT Act") marks significant
changes to the beneficial ownership regime and came into effect on
31 July 2024. The Ministry of Financial Services and Commerce has
announced that enforcement of the new requirements will be deferred
until 1 January 2025. The BOT Act expands the range of entities
required to maintain beneficial ownership registers and now
includes exempted limited partnerships, limited liability
partnerships and limited partnerships.
Several categories of previously exempt entities are now required
to maintain a beneficial ownership register.
A fund registered under the Private Funds Act or Mutual Funds Act
is not exempt under the new BOT Act, however, such entities are now
afforded the option of an "Alternative Route to
Compliance". Instead of providing the details of its
beneficial owners, a registered fund may provide contact details to
a 'contact person' licensed or registered
in the Cayman Islands. Such contact person would be responsible for
providing details of the fund's beneficial owners if and when
requested by the relevant authority. Stuarts is providing the
service of 'contact person' to our clients.
We have been reaching out to clients who will be affected by the
new BOT Act to ensure compliance by 1 January 2025. If you have
missed our emails or have any questions, please reach out to our
Head of Corporate, Megan Wright, or our Head of Banking &
Regulatory, Jon McLean.
Stuarts Offers Clients AML and Compliance Training
Stuarts is pleased to provide clients with comprehensive
compliance and AML training. CIMA requires Anti Money Laundering
(AML), Counter Terrorism Financing (CTF), Proliferation Financing
(PF) and Sanctions related training to ensure that local
regulations and associated duties are understood by all relevant
personnel of FSP's, including Directors, AML Officers, Senior
Management and all applicable staff. This training must be
conducted at least annually to stay abreast of the AML
obligations in the Cayman Islands and to avoid any penalties for
non-compliance.
Our AML training sessions ensure all CIMA regulatory requirements
are met. and are led by former CIMA Chief Analyst and current Head
of Group Compliance at Stuarts, Reuben Foster. For assistance
please contact our Head of Banking & Regulatory, Jon McLean or our Head of Group Compliance, Reuben Foster.
Stuarts Achieves Top Recognition in Legal500 Rankings
Stuarts proudly ranked as one of the Cayman Islands'
top-tier law firms, recognised across four practice areas in the
Legal500 2025 Edition, reflecting the firm's consistent
excellence in Investment Funds, Corporate and Commercial, Banking,
Finance and Capital Markets, and Real Estate.
Chris Humphries continued to excel as a
standout practitioner in the Cayman Islands' legal market.
Praised for his "vast experience" and "excellent,
very commercial, and very responsive" approach. Recognised as
a Next Generation Partner in Corporate and Commercial, Megan Wright solidified her reputation as a
rising leader in this practice area together with being celebrated
as a Recommended Lawyer in Investment Funds and Banking, Finance
and Capital Markets. Jonathan McLean (Banking Finance and Capital
Markets), Buck Grizzel (Real Estate), and Joseph Bates (Corporate and Commercial) were
celebrated as Recommended Lawyers, with contributions spanning
banking, digital assets, real estate, and investment funds.
Further commentary and testimonials can be read in our press
release below.
Stuarts Ranked Leading FinTech Firm in Chambers PA Guide 2025
Stuarts has been ranked a leading law firm in the Chambers PA:
FinTech 2025 Edition. We are pleased to have been ranked as a
leading law firm for FinTech in addition to receiving two (2)
Leading Partner rankings for Chris Humphries and Jonathan McLean, showcasing the firm's
consistent excellence in advising digital assets clients on
corporate and regulatory compliance matters, investment funds,
cryptocurrency projects and token offerings.
The FinTech department was specifically commended for being
"very responsive" and "sharp," with clients
praising the firm's ability to quickly grasp complex issues and
provide effective solutions.
More on the rankings can be read in our press release below.
Publications
Mondaq Comparative Guide
2025: Capital Markets in the Cayman
Islands>
Legal500 Interview with Chris Humphries:
2024 Market Overview and Adapting to Clients'
Needs>
Legal500 Fintech Country Comparative Guide
2024: Alternative Investments: Crypto Funds and
Digital Assets Thrive Under Innovative
Legislation>
Business Reporter 2024:
Empowering Web3 through Innovative Legislation in the Cayman
Islands
Lexology Panoramic 2024
Chapters:Private Equity: Fund Formation in the
Cayman Islands
Lexology Panoramic 2024
Chapters:Private Equity: Transactions in the Cayman
Islands
Chambers Global Guide
2024:Introduction to Funds in the Cayman Islands
>
Chambers Practice Guide 2023: Doing
Business in the Cayman Islands: Digital Assets, Trends and
Developments >
Legal500 Alternative Investments Guide 2022: Rise in Fintech Funds in the Cayman Islands >
Corporate Governance Article >
Cayman Structures for Cryptoassets and Digital
Asset Companies >
Stuarts Podcasts on Mutual Funds and Private Funds
Stuarts released podcasts on the Registration of Private Funds
and Mutual Funds in the Cayman Islands. The podcasts include a
brief summary on; the types of private funds (including non-fund
arrangements) and mutual funds in the Cayman Islands and their
registration requirements.
Podcast - Mutual Fund Registration in the Cayman
Islands
Podcast - Private Fund Registration in the Cayman Islands (Part 1)
Podcast - Private Fund Registration in the Cayman Islands (Part 2)
Events:
WAGMI - The biggest Web3 event in the US.
Miami, 21-24 January 2025
Stuarts is a proud sponsor of the upcoming WAGMI Web 3 conference
in Miami! Get in touch if you
will be attending the conference or will be in the area. We would
love to connect with you!
Originally Published 31 December 2024
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.
