The Ministry of Financial Services is inviting public comments on its proposals to reshape Cayman’s beneficial ownership legislation, including by creating a single act to make the legislation more effective in fighting crime.
See below from the Ministry of Financial Services:
The Ministry of Financial Services asks industry associations, and the general public, to respond to its consultation paper titled Enhancement of the Beneficial Ownership Framework. The four-week consultation was issued today, and it will close on Monday, 4 October.
The consultation paper seeks input into Government’s proposed changes to the framework, including: the creation of a single Act for beneficial ownership, in line with other jurisdictions such as the Bahamas, the Isle of Man, Guernsey, Jersey, and the British Virgin Islands; the proactive inclusion of limited partnerships and exempted limited partnerships into the framework; requiring additional data reporting, including the nationality of the beneficial owner and the mechanism by which the beneficial owner holds control; easing the burden to industry by reducing filing duplications, as much as possible; providing improved access to beneficial ownership information by other competent authorities and financial institutions, in preparation for public access; and obligations to notify the Competent Authority of any discrepancies with the information.
Government’s proposals follow a holistic review of Cayman’s beneficial ownership transparency framework. They reflect the evolution of international standards; industry’s prior feedback on the framework’s ease of use; Cayman’s 2019 commitment to introduce a public beneficial ownership register by 2023, when public registers are expected to become an international regulatory standard; and data security.
Three key acts – Companies, Limited Liability Companies, and Limited Liability Partnership – would be amended under the proposals. Consequential amendments to any other act that references beneficial ownership provisions also would be made.
Click here to access the consultation.
In a press release, the Minister of Financial Services, the Hon. André Ebanks said : “This consultation is important, because a strong beneficial ownership framework strengthens our commitment to fight criminality not just locally, but also globally,”.
“Government’s proposals are therefore intended to place Cayman in an even stronger position with global standards that fight criminal activity, such as money laundering and terrorist financing; and, at the same time, creating a more streamlined and concise legislative act .”