CIG called to London conference

| 05/05/2016 | 51 Comments
Cayman News Service

Premier Alden McLaughlin in the LA

(CNS): The premier will be leading a small government delegation to London at the weekend after the UK requested the presence of its larger overseas territories at an anti-corruption conference hosted by British Prime Minister David Cameron. But Alden McLaughlin said that the main reason for the summons appeared to be the latest developments over beneficial ownership information exchange and the continued evolution in Europe towards a new initiative of automatic exchange, which Cayman is unlikely to be able to avoid without being blacklisted.

Speaking in the Legislative Assembly on Thursday morning, McLaughlin told the members that despite the recent agreement between the UK and Cayman over how British law enforcement authorities can access beneficial ownership details of companies and other financial entities registered here, things were already moving in a new direction.

He said that while the UK was satisfied with the proposals from Cayman over the issue, pressure was coming from the entire European Union and G20 nations for a new global standard of automatic exchange, which Cayman would also have to adopt to avoid being blacklisted.

McLaughlin revealed that the UK was already asking Cayman for a commitment to any new initiative for information exchange. However, he said the jurisdiction would not be “the guinea pig, going out in front” on any new initiative until it was adopted across the international community.

Given the constantly evolving situation surrounding beneficial ownership, he said that Cayman had to be at the table. Therefore, he would be going to the conference, along with Financial Services Minister Wayne Panton and Ministry Counsellor Roy McTaggart, but they would be engaging in preliminary meetings before the global conference, set for next Thursday.

“We have to engage,” he said.

The premier said he had not expected things to move so quickly again but pressure was building and things were not going to stand still. He said that the situation had now moved well-beyond discussions about a central public register or similar systems.

He warned that the Cayman Islands could not act in isolation, given its significant role in the world’s financial system, and could not avoid adopting whatever becomes the global standard regarding information exchange.

However, he said that Cayman was familiar with automatic exchange since the adoption of the EU savings directive and more recently the implementation of FATCA with the US, a similar agreement with the UK and the latest common reporting standard.

Responding to questions from MLAs, the premier warned that, faced with more demands for transparency regarding the offshore financial services sector, he did not think that “enough would ever be enough” and said Cayman had to move with the global tide.

Print Friendly, PDF & Email

Tags: ,

Category: Politics

Comments (51)

Trackback URL | Comments RSS Feed

  1. Sucka Free Cayman says:

    Sometimes what you wish and impose on others will happen to you SADIQ KHAN new Muslim Mayor of LONDON Tek Dat!!!! Little Pakistan

  2. SKEPTICAL says:

    Good idea if you want to see tumble weed bouncing down Cardinal Avenue, and fishing become the major industry in Cayman – again.

  3. Anonymous says:

    Why go halfway? If we’re seeking to compile an open and transparent asset database of wealth on the planet, then we need a concurrent push for a global real estate beneficial owner database. There has always been a massive real estate component to any illicit activity, whether proceeds of crime, money laundering, terrorist financing etc. The real estate/condo booms in many global cities have been propelled by a complete absence of oversight and due diligence over the last couple decades – often the owners are concealed behind law firms that are legally exempt from KYC obligations and may not even know whose money they are handling or where it came from, or proxy companies that may not exist or be in proper standing! If we’re going to be honest about tracking wealth, that farce needs to be addressed too.

  4. Anonymous says:

    If this is to become a genuine “global standard”, then we should embrace this just as soon as everyone else gets on board – and by everyone, we ought to point out not just the so-called “havens”, but the profligate western economies (and their states/provinces/cantons) that are driving this popular issue/non-issue (since already mechanisms in place for authorized access to this info).

  5. Knot S Smart says:

    Maybe its time we look at becoming an American Territory like Guam or the US Virgin Islands. We know that Delaware and Nevada provide the largest tax shelters in this part of the world – so we can become like them and our offshore business will thrive again…
    The EU is the new bully of the world…

  6. Anonymous says:

    Will they hold the U.S. (Delaware) to the same standard or similar to OECD/FATF, only go after the small guys they can bully?

  7. John says:

    If the UK is not satisfied with the agreed format for shared information by law-enforcement and regulators, why spend money developing that register. If it will be scuttled by this new initiative, why not wait for the specifications of beneficial ownership now being pushed, and do it right the first time..

  8. Anonymous says:

    why to become a mini Jamaica?

    • Privateers of Democracy says:

      Oh yes the old colonial threat if you don’t behave we will let go our colonial bad dog and his master whom we put incharge on you. You ain’t obviously look around this place at who is running it, thus you wouldn’t refer to it or them as Mini. The divide and rule strategy is still a viable option in arsenal of tools frequently used by the FCO to carry out the UK&EU agenda.

    • Anonymous says:

      Already are. Thanks Mac!

  9. Privateer of Democracy says:

    At least we would have a choice it can’t be no worse than servitude to European Autocracy. Chaos you must be talking about the repercussions of colonialism from its raped and pillaged empires, whom they believe and want now to pay for that privilege!

  10. Anonymous says:

    Anonymous says: The CIG is doing what it can to stay on the right track. But u know and i know, that Cayman is no match for the UK and the EU. And if everything was as easy to do as you’re saying.
    Then all of U BULL HEADS would be doing it……

  11. SKEPTICAL says:

    Maybe in negotiations to date with Alden, the FCO has adopted Teddy Roosevelt’s old philosophy – ” speak softly, but carry a big stick ” – and have already taken Alden aside and shown him a picture of the ” Big Stick “.

  12. Anonymous says:

    There needs to be some unified resistance from the OTs. These onshore countries think they’ve got some momentum from the Panama leaks to get what they always want: more information about everyone’s business. Tell them to stick it and buy us some time to get our side of the story out there, which is that legal tax competition is good for everyone and there’s no more illegality here than in London or New York.

  13. Jah Dread is back says:

    Do I sense a bit of rejoicing here or is it my glasses acting up, by the way it’s dog eat ya supper. Look out cause you may soon have a lot of guests at your house for dinner if what you’re saying is true.

    There is an ace in the hole for cayman but I don’t think the local boys are smart enough to discern it. Wel we’lll all just have to wait and se won’t we. Oh by the way what time is dinner tomorrow at your house of course. Tell you what I’ll spot for drinks at Sea Inn at around 6 and then you will be able to host us all in true whatever your country is style. Ciao.

  14. Louie Chama says:

    Run along their Wayne Al make sure to wear your Union Jack draws to see your FCO bosses and please make sure to pull it up past your waist line eh! so they can see your buffoonery and idiotic loyalty. With the UK threatening to exit the EU some supporters need the sacrificial goat to bleed out so Europe can see the Blood of the offshore banking Martyr’s and problem child. Yes you PPM winners who installed these loyal stooges prosperity soon come ya here.

  15. Anonymous says:

    They should take Whodatis to set them straight!

    • Anonymous says:

      Maybe Whodatis is part of the crew, never underestimate the anti-British sentiment brainwashing agenda

  16. Anonymous says:

    England cant even decide for themselves. The EU runs things under the “New Germanic” Europe.

    I hope the Vote to leave the EU. Its been nothing but a lead weight on the ankle of England.

    I wonder if our politicians know that every dollar arriving in Cayman bank accounts comes through a US Correspondent bank. So who is the real money washers? hmmmmmm. Our politicians are clueless about how to do battle with these snakes.

  17. Anonymous says:

    Ironic that David Cameron is presiding over this conference, considering his close ties to recent revelations in the Panama Papers!! Typical hypocrisy of Mother Country!

    But our Premier-sans-cojones will probably do whatever is directed without objection.

  18. Anonymous says:

    Better than Mac telling us what to do.

  19. Anonymous says:

    Only McKeeva (David) can deal with FCO/UK(Goliath).

    • Anonymous says:

      His weapons are carrots, milk, and a mid-level frequent player card from the Seminole Hard Rock Hotel & Casino.

    • Anonymous says:

      In a fight starting from range a skilled sling shot at the time would almost always win against a armed close combat fighter. David was the “Goliath” and poor Goliath was the “David”.

  20. Anthony says:

    Our financial Industry is going to crash and many Caymanians are going to be jobless and may have to run away from home.

    • Anthony says:

      Thanks to the PPM

    • Anonymous says:

      Thanks for your scholarly analysis Chicken Little.

    • anonumous says:

      We can always go to England!! Remember what comes around goes around.

      • B.M. says:

        Please explain to me why you think you can go to England and easily secure jobs when there are many better qualified English people unemployed and seeking employment.

        There is no Caymanian first regardless of suitability policy in place in merry old England. I am guessing that you will go there for the privilege of draining their social services system. It is bad enough that there will be many who run off with the belief that their master degrees from barely third tier English educational institutions will lend them advantage when those institutions are merely sad jokes that have provided worthless degrees.

    • Anonymous says:

      At least they can still run to Europe and find a job.

  21. Anonymous says:

    It does not matter what happens in Wyoming, Delaware or the City. A public register will be required for the OTs if they are to avoid an EU blacklisting. It will not be up for negotiation.

    • Anonymous says:

      of course it matters, otherwise this is just a ploy for the London and delaware to to get more business.

      Can someone please give a link to the UK public beneficial owner register.

      • Anonymous says:

        That will be the one that came online on 6 April and for which all companies must provide the data by 30 June 2016 in their annual returns? In that case you want to go the Companies House website.

        • Anonymous says:

          Isn’t that list just for limited companies, so excluding sole traders, partnerships, trusts and LLC’s?

          • Anonymous says:

            Partnership lists are already public. Sole traders by definition do not hide beneficial ownership. England does not have LLCs. And domestic trusts have tax consequences sufficient to make their abuse unlikely.

    • Anonymous says:

      And if our Premier have to defend us we are dead in the water because he is spineless. Perhaps a full and complete analysis needs to be done of our financial industry to determine the implication of standing against the pressures of the UK and EU. I think we need to have some idea of the business we would loose by complying with their demands versus being blacklisted. Of course this has to be done considering the short, medium and longterm effect on the Cayman Islands, bearing in mind that most of the pressure is an attempt for these nations to get a bigger slice of the pie (financial industry). Just something for us to consider about so don’t be too quick to criticize my comment. Consider it with an open mind.

  22. Politics 101 says:

    Is this all just smoke and mirrors did the PPM agree or sign off on UK agreements in 2013 after winning the election?

    • Anonymous says:

      Oh dear, Politics 102, you sad deluded fool. CIG will do whatever it is ordered to do by the British government, the PPM and any other of your tin pot politicians are but pawns in a global strategy. Basically, you have not, do not and will not have a choice in regard to beneficial ownership. If you seriously believe that CIG can negotiate anything to do with UK and EU policy you are more deluded than I thought.
      No CIG, from whatever incompetent quarter, can sign off on anything in regard to these issues without FCO approval so stop trying to punch above your weight, it’ll only result in a knock out.

  23. Nee says:

    Truth be told what ever England decides will be our fate; simple.

    • Anonymous says:

      It’s 2016 way over time to become independent and take the reins.

      • Anonymous says:

        I think that would be a real eye opener for Caymanians. As all business leaves and takes its skill along with it Cayman will go back to third world leadership and when they have bled Cayman Islands dry The rich will buy the island and turn it into their private club. But wait! First you need to pay back the 1.4 billion and counting. Bummer.

      • Anonymous says:

        Go, please go, but be warned, you are bankrupt, you produce nothing, you have no independent credit rating and you are up to your necks in local corruption.
        So please, go, we won’t miss you, promise.

    • Anonymous says:

      Correct, 2:53. So it is time to ask for independence and then let us see how Ezzard, Bernie, Mac and Arden and the Limey bashers cope with the overnight flight of capital from a mickey mouse island with huge debts including a loss making Turtle Farm, a massively subsidised airline serving a country of 60,000 people and a so called sister island where no one actually has any work to do that produces anything but they are all paid high salaries to sit at their desks. What was that about dog eat your dinner?..

      • John says:

        False economy is what I call it.

      • Anonymous says:

        Actually what would happen is something entirely different then what you imagine in your negative mind. We would transform the business as we sent our bankers, lawyers and other professional …accountants to work in the other jurisdictions considering the level of training they have. In return, just like Jamaica the would built houses here but instead they would be working at a higher level and so lots more things built here. We would invest heavily in Cuba and the surrounding islands and redevelop tourism throughout the region.

        I really think people underestimate us Caymanians…I don’t underestimate myself andI know that at this very moment in time I could go to many “first world jurisdictions and buy a house-cash” And I m not talking about house equity so don’t underestimate the capital that some of us have. I just don’t have the time or the desire to become a investor but if I had to I would learn that too. PS I am not a rich family person just a normal Caymanian that drives around a plain old jeep and goes to work and lives in a normal little house-nothing fancy no need.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.