The Cayman Islands Government has launched a public consultation designed to help establish the best way of ensuring appropriate mechanisms exist to effectively maintain information on who owns and controls Cayman-registered companies and to ensure that information is readily available to the appropriate authorities.
This consultation covers sections 2 and 3; and section 6 of the Cayman Islands Action Plan to Prevent the Misuse of Companies and Legal Arrangements.
A letter from the Financial Services Secretariat said that the feedback would be important to many because “the outcomes could affect our financial services providers, and every person who has a company – whether resident, non-resident, exempt, or foreign – that is registered in the Cayman Islands”.
It added: “Transparency is important, on a local and global scale, because it is a means to mitigate financial crimes. It protects investors, as well as public revenue. Transparency also generates public trust in the integrity of our systems, and increases confidence in the stability of our jurisdiction.”
The government released an action plan on June 18, 2013, in response to initiatives stemming from the UK-chaired G8 Summit. The plan commits Cayman to a review of its financial services regime, to ensure that business conducted in the Islands continues to meet international standards on combating money laundering, and the financing of terrorism and proliferation.
“While Cayman’s robust response to such financial crimes has been recognised by third-party global bodies such as the Financial Stability Board and the Financial Action Task Force, we will continue to evaluate further proposed changes in light of the intended benefits to law enforcement and tax authorities, the costs of implementation, and the potential impact on our competitive position,” the letter said.
Cayman Islands Government, regulation