Cayman Finance has stressed that Cayman’s existing verified ownership regime remains superior to that of the UK in a response to a vote by the UK House of Commons to amend the proposed Sanctions and Anti-Money Laundering Bill to require public ownership registers in the Cayman Islands and other British Overseas Territories by December 2020.
Jude Scott, CEO of Cayman Finance, described the a vain attempt to tackle a global problem and stressed that the vote simply continues the legislative Cayman process for potentially requiring changes to Cayman’s ownership regime more than two years from now, during which time there will still be on-going dialogue with the UK.
Scott said: “The House vote is a vain attempt to fight global problems like corruption and tax evasion by unfairly discriminating against a few jurisdictions – requiring public registers from Overseas Territories but not Crown Dependencies, for example. Global problems require global solutions and standards that apply to all jurisdictions.
“The Cayman Islands is a transparent jurisdiction that already meets or exceeds the full range of globally-accepted standards for transparency and cross-border cooperation with law enforcement and tax authorities. Cayman became an early adopter of automatic data exchange by signing onto agreements such as the European Union Savings Directive, the OECD’s Common Reporting Standard, US FATCA, and country-by-country reporting principles under the BEPS process.
“The Cayman Islands also has had a world class verified ownership regime in place for more than 15 years whereas only eleven out of twenty-eight E.U. countries have a register at all. For all of those reasons, the OECD’s Global Forum in 2017 assessed our jurisdiction to be “largely compliant” with the international standard for transparency and exchange of information, the same rating given Canada and Australia.
“The Financial Action Task Force has recognized that verifiable private registers like Cayman’s which are searchable by appropriate tax authorities and law enforcement agencies remain the more effective approach. Recent reporting about multiple defects in the UK’s own current public, but unverified, register system prove the point. The House demonstrated a remarkable display of double standards by voting down a requirement to perform basic anti-money laundering checks on the hundreds of thousands of UK companies formed annually through Companies House in the UK.
“We are a long way from any change in Cayman’s existing verified ownership regime. The Cayman Islands financial services industry will support fully all actions taken by the Cayman Islands Government to assess its options for responding to this unjustifiable encroachment into matters within Cayman’s domestic competence.
"In the meantime, Cayman Finance notes the UK Government's explicit assurance that it will work with the Cayman Islands in shaping any implementation of this legislation; that the UK will respect the Cayman Islands' constitutional rights; and its assurance that it will work with the Cayman Islands to protect its interests. Cayman Finance will support the Cayman Islands Government in ensuring that the UK delivers on these assurances in any proposals to make changes to the Cayman Islands' globally endorsed existing Anti-Money Laundering regime and it’s highly successful, well-regulated and globally significant financial services industry."
Cayman Finance, UK, UK House of Commons, Anti-Money Laundering Bill, Cayman Islands, British Overseas Territories, Jude Scott