Minister steers through bundle of offshore laws

| 03/02/2020 | 16 Comments
Cayman News Service
Financial Services Minister Tara Rivers in the Legislative Assembly, 30 January

(CNS): As the Cayman authorities rush to meet the recommendations in last year’s damning CFATF review to plug gaps, address shortcomings and deal with vulnerabilities in the local protections against financial crime, Minister Tara Rivers steered through another bundles of laws last week. This latest batch of legislation focused on modernising the beneficial ownership regime as well as enhancing regulatory structures in funds.

The Companies (Amendment) Bill, 2020, the Limited Liability Partnership (Amendment) Bill, 2020 and the Limited Liability Companies (Amendment) Bill, 2020 were all passed. Officials said that the bills provide clarity on what constitutes a beneficial owner and the responsibilities of corporate service providers to gather, record and fille the information with the Registrar of Companies.

The Private Funds Bill, 2020 and the Mutual Funds (Amendment) Bill, 2020 enhance the regulatory infrastructure for investment funds, including previously exempted funds, with the familiar sensible and commercially responsive model that has been the backbone of the Cayman Islands’ success as a leading jurisdiction for investment funds, officials from Rivers’ ministry explained.

The International Tax Co-operation (Economic Substance) (Amendment) Bill 2019 was also passed and has been the subject of industry consultation. The amendments were designed to maintain alignment with international standards and to facilitate effective implementation of the law in a manner which can better withstand the scrutiny of international monitoring and peer reviews regarding the “substantial activities” requirement for no tax or only nominal tax jurisdictions under the OECD BEPS Action 5 on Harmful Tax Practices.

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Category: Business, Financial Services, Laws, Politics

Comments (16)

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  1. QED says:

    Have similar laws been enacted in Delaware? of Luxemburg? or even London?

    • Anonymous says:

      Nothing close in opaque, self-regulating Canada where the hot money, proceeds of crime, and corruption already roosts; where the RCMP Financial Crimes Unit is being disbanded; where FATF hasn’t updated their failing report card in years; and where worry-free PE is welcomed like everything else involving money – with open arms.

  2. Anonymous says:

    CIG can pass all the fancy laws it wants to pass but if employees in the financial industry and all of it’s offshoots can’t get to and from their offices in a timely manner, each and every day, are ALL DOOMED! Think about it Government!!

  3. Anonymous says:

    We’re shutting our private fund down – not worth the red tape. Have already found a way around this b/s. Our investors (both of them) are in complete agreement. Nothing shady, nothing machiavellian, just not economical to continue in current regulatory landscape.

  4. Anonymous says:

    Bring back Wayne Panton.

  5. Just Kidding says:

    “respect for the Rule of Law”. Don’t make me laugh Tara

  6. Kurt Christian says:

    Vote No

  7. Anonymous says:

    If you align with EU tax demands, kiss your half US business goodbye. There is no international agreement on what “harmful tax practices” look like and it is unlikely that the US or China are going to agree the EU model for the future.

  8. Anonymous says:

    One thing to enact laws, another thing to enforce them. How many people have been busted under the existing regulatory legislation? Last time I checked it was none.

    • Anonymous says:

      Not just those. Any law. There is no consistent and effective enforcement of anything, ever. Following laws around here simply seems to put you at a competitive disadvantage. Nothing more, nothing less.

  9. JTB says:

    Did she steal any more pensions in the process?

  10. Anonymous says:

    You can hear the champagne bottles popping in the offices of the local audit firms, the only winners in this mess.

    • Anonymous says:

      what “mess” exactly? Please elaborate

    • Anonymous says:

      I am sure no tears are being shed at the local law firms who will be getting tens of millions in fees registering these entities.

      The two large law firms needlessly dragged the private funds bill process over the past year by continuously putting up roadblocks.

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