The Cayman Islands Government has issued a report stating that it will continue its current method of providing beneficial ownership information to law enforcement, tax and regulatory authorities.
In its consultation report, the government said that its decision was based in part upon responses from local and international companies, individuals, and non-governmental organisations, given during a public consultative period held from November 15, 2013 to February 28, 2014. The consultation was conducted by the Ministry of Financial Services and Commerce.
The report noted that the Financial Action Task Force (FATF) recommendations outline three avenues by which a country can comply with the global availability of information standard.
Wayne Panton, Minister of Financial Services and Commerce, said the UK is now taking steps to adhere with the standard via one of these avenues, by consolidating information into a central register.
Panton noted that Cayman has been adhering to the global standard for more than a decade, by providing this information to law enforcement, tax and regulatory authorities from data collected, verified and maintained by licensed and regulated corporate service providers.
“Both of these methods are acceptable under the FATF recommendations,” Panton said.
It also noted that although they are global in nature, the recommendations allow jurisdictional flexibility – not in the intended outcome of the recommendations, but in how that outcome is achieved.
According to the report, Cayman’s CSP regime adheres to the core set of principles in the G20’s High-Level Principles on Beneficial Ownership Transparency, which was issued in November this year.
The government said: “Until such time as there is global agreement on appropriate exemptions and safeguards, and this becomes the internationally practiced standard, the Cayman Islands will continue to follow its CSP regime.”
Cayman, FATF, Wayne Panton, CSP