Registrar publishes help for NPOs struggling with law

(CNS): The registrar for non-profit organisations has posted more documents on its website to help NPOs and charities based in the Cayman Islands navigate their way through the process to comply with new legislation. Information on registration applications, companies falling under section 80 of the Companies Law (2018 Revision) and general queries can be found on the General Registry website, where they can also print annual returns and application forms for section 80 companies. By 1 April more than 400 churches, charities, sports clubs and community groups had registered with government.

All of these entities fall within the scope of the newly implemented Non-Profit Organisations Law, designed to strengthen the Cayman Islands’ regime to counter money laundering and terrorist financing.

“We also expect to upload complaint forms this month and, in short order, there will be further guidance issued around the complaints process,” said Paul Inniss, Head of Compliance at General Registry. “Based on the feedback we have received, we believe these initiatives help NPOs to meet their legal obligations, while supporting their ability to carry out good works within the community.”

Despite the need for the law to address offshore vulnerabilities, officials said charities in this jurisdiction are generally considered low risk. Inniss noted that so far, based on General Registry’s interim assessments, NPOs have posed little to no issues.

He explained that compliance with the law initially created unintended consequences in Cayman’s banking sector, but the majority of local banks continue to facilitate the opening of accounts and keep up banking relationships for local charities.

“We still encourage persons to use the locally regulated banking sector and maintain internal controls to protect against fraud, money laundering and the financing of terrorism,” Inniss added.