BO access won’t be public yet under new bill
(CNS): The Cayman Islands Government has rolled out another piece of legislation to enhance its anti-money laundering regime. However, the Beneficial Ownership Transparency Bill only improves access for law enforcement and relevant agencies, not the public. While the bill has provisions to allow public access in future, officials said that will not happen before Cayman and the other territories have engaged with the UK over privacy and data protection rights.
The new bill, which is now open for comment, will enhance and consolidate the existing beneficial ownership legislative framework and align with the Financial Action Task Force (FATF) recommendations to ensure competent authorities have access to adequate, accurate and current information on beneficial owners of companies.
Officials said the bill will play a crucial role in maintaining the Cayman Islands’ adherence to these evolving international standards. Financial Services Minister André Ebanks explained that it will reinforce the Cayman Islands’ reputation as a trusted financial services centre.
“The introduction of the Beneficial Ownership Transparency Bill, 2023 demonstrates the Cayman Islands’ commitment to upholding global standards, as they evolve, in the fight against money laundering and terrorist financing,” he said.
“By enhancing transparency and ensuring access to accurate information, the Cayman Islands solidifies its position as a trusted global financial centre of excellence dedicated to combating financial crimes. Furthermore, the bill will proactively assist the Cayman Islands in preparation for the fifth round of the FATF evaluation process, which will commence in 2025,” the minister added.
Officials said that over the last two years, there has been extensive consultation with industry stakeholders, members of the public, government partners and international entities. This feedback was critical in shaping the creation of the bill, which has received a positive response from stakeholders, according to the CIG.
The bill also ties into the 2019 commitment made by the Cayman Islands to the UK regarding the introduction of public registers of beneficial ownership information. The proposed legislation contains a clause that would allow Cabinet to make regulations to provide public access to specified beneficial ownership information.
But parliament must approve those regulations at a future meeting, which the ministry said will not take place until discussions with the UK and other British Overseas Territories, as well as Crown Dependencies, relating to necessary privacy safeguards have concluded.
These discussions will be informed by the landmark judgment issued by the European Court of Justice in November 2022 striking down public access for beneficial ownership registries in the EU on the basis of their interference with privacy and data protection rights.
Ebanks is expected to present the bill at the next parliament, anticipated for the fourth quarter of this year. If it is passed, the existing legal obligations will remain in place until the new provisions are introduced in a phased approach. The Ministry of Financial Services and Commerce is also working on developing the regulations and guidance, which will undergo consultation with industry members.
Beneficial ownership refers to individuals who ultimately own or control an entity. The bill consolidates the beneficial ownership rules in the Companies Act, Limited Liability Companies Act and Limited Liability Partnership Act into a single law.
See the new bill in the CNS Library.
- Fascinated
- Happy
- Sad
- Angry
- Bored
- Afraid
Category: Business, Financial Services
People use these company names to hide their assets. That’s the problem and no one knows who they are dealing with.
BS.Banks have known company beneficial ownership for years.
..secrecy versus privacy/confidentiality .. and all that.
I do not want the public to have on-line view access to my bank account – that is me protecting my privacy.
Tell them no.
Law enforcement here or abroad (from 1st world countries only) based upon reasonable suspicion or probable cause – have at it, by all means.
LOL. Just opened an account in the US. Procedure. One piece of ID and provide an address. The banker stated information will not leave the States. If it was Cayman. Two references, two pieces of ID, proof of address, source of funds, estimate of how much depositing and what percentage is cash, check, wire transfer, job letter. Proof of residency meaning lease or property ownership. These requirements and more are continuous! If wish to utilize a different department of the the same bank, start all over. The point is, how are we to compete? How is this a level playing field?
Please share the name of the Bank! I need a US account.
Bank of America
Personally, I think there should be an exception from any of this Beneficial Ownership reporting for majority Caymanian owned companies. Why would foreign governments be interested in what Caymanians own and have owned for generations?
After reading this Bill, if it is passed as legislation by Parliament and brought into force, it appears that, ipso facto, it will be a prima facile infringement of the fundamental human right to privacy (contravening art.8(1) ECHR; s.9(1) Bill of Rights).
The desire to comply with international obligations, which is understandable, is one thing, but it must not infringe fundamental rights and freedoms.
This seems like the international pressure brought upon the Cayman Islands may, once again, cause controversy and likely invite litigation.
Seems you skipped ECHR Art 8(2) which gives broad exemptions which ought to apply when the subject matter is the sheltering of money in dodgy tax havens.
Public access will follow fairly soon after the next UK election.
But will the UK have the same law for UK companies? I doubt it.
yep, we have to make sure the wealthy can still hide there money in the cayman islands.
Why do you care?
poverty is a result of hidden excessive wealth.
Sez who, 10:41? The Tax Justice Network? Oxfam? Or some other knee jerk reaction leftie organization? It would just as likely go in some corrupt autocratic dictator’s ( and his family’s) pockets or buy some more warplanes and weapons of mass destruction. Mankind does not operate along kumbaya lines, alas.
Maybe think beyond wealth and consider where the money is. Whether it’s in a bank or an asset, it is in the economy in the form of lending or investment. The loans and investments are not static. That’s the fuel for production/innovation/jobs.
I get the idea that you may believe “wealth” is a colossal mountain of neatly stacked hundred dollar bills buried in a secret vault somewhere outside the reach of the greater economy and therefore is somehow responsible for your poverty. Or maybe I don’t know what I’m talking about. Explain how wealth is making you poor.
no, poverty is because the rich get all the tax breaks while disclosing wealth. the poor pay all their tax or go to jail.
Since most wealthy people are able to use appropriate spelling and grammar it’s safe to say that you are neither wealthy or knowledgeable about the financial services industry in Cayman.
neither nor
the grammar issue probably caused by spelling correction.
Tell us you don’t have the first clue about banking without telling us you don’t have the first clue.
CNS link to Bill does not appear to work
CNS: Sorry about that. I’ve now put the bill in the Library and linked to that page.