Parliament adjourns with passage of new BO regs
(CNS): Premier Juliana O’Connor-Conolly who recently added Financial Services to the largest portfolio ever held by a Cabinet minister steered a government motion through parliament, Monday night, that enables people, with what is confirmed as a legitimate reason, to access beneficial ownership information about companies registered in the Cayman Islands. The Beneficial Ownership Transparency (Legitimate Interest Access) Regulations, 2024 approved by Cabinet last month will enable journalists, academics, researchers, non-profits or other businesses to see what only law enforcement could see until now.
The premier told parliament that access will only be permitted when, “the purpose aligns with combating money laundering, related crimes, or terrorism financing.”
The regulations stem from a 2019 commitment to the UK to adopt a public register of beneficial ownership information once it became the international standard. But the commitment was revised in December 2023 following the European Court of Justice’s 2022 ruling, which deemed unrestricted public access to beneficial ownership information disproportionate to privacy rights.
The new regulations were developed following consultation and aim to balance transparency with privacy while addressing international expectations. They were drafted with constitutional expert Sir Jeffrey Jowell KC. O’Connor-Connolly said the regulations would align Cayman with evolving global standards, particularly ahead of upcoming assessments such as the Financial Action Task Force mutual evaluation, to maintain the islands’ international financial reputation.
The UK accepted the regulations, agreeing not to impose an Order in Council, the premier told her colleagues adding that the move ensures this jurisdiction remains proactive and influential in shaping global discussions on beneficial ownership transparency.
The motion passed with just nine votes in favour as eight members were absent when the vote was called and Chris Saunders MP (BTW) opposed the regulations over privacy concerns and the fear that it would undermine the economic success of the offshore sector.
Last month government issued a press release about the proposed regulations and said that the issue of legitimate interest had yet to be defined. Nevertheless, its is now open for anyone who believes they have a good reason based on their own, or a wider public interest to seek access to information held by the reporting authorities hear in relation to who actually benefits from the ownership of certain financial entities in the Cayman Islands.
The passage of the regulations was the last piece of business before the premier adjourned the House until 31 January when the minority government is believed to be brining a number of controversial pieces of legislation to parliament weeks before it is prorogued ahead of the general election in April, including very controversial amendments to the national conservation act that could render the legislation completely toothless.
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Category: Local News
7:26 pm, i will tell you why, because the people who we have entruxted with the governance of these oslands dont have a clue and in their slim defense were elected by persons who know even less of what obtains in the realm of government and the responsibilities we assign to these geese called Parliamentarians. to go a bit further the World Class service another pile of geese is just as bad for they at least could should i say under normal circumstances have the necessary expertise to advise the Minstrel geese. Going yet a bit further, neither the latter or the first tier geese seem to understand that consultation with Industry should have been the first tier of info gathering rather than dealing with a Knight in shadow Armor, no disrespect meant.
so All in all and to put it midly, consider this another Clusterfark of the Independent Under Pot Membership (UPM). Salute!!
In the transparency vs corruption fight, it’s more than a tad ironic that this forever honorable, self-appointed, immune from criminality Cabinet seeks to take credit for spearheading this, even while they fail to register their conflicts or publish them in real time, and omit mention of the multimillion dollar deals amongst themselves. They fail to produce auditable financials, fail to adhere to procurement laws, ritually decline legitimate FOI requests, steal tens of millions for their district pet projects, fail to perform their sworn duties to land and people. Then author referendum questions for foreign lobby groups, and concurrently negotiate further secret deals, entirely unqualified and incompetent, hidden behind a thick velvet curtain, with one preferred developer in settlement of the last one that predictably failed. Disregarding all other mitigating facts, the method and form In which it was signed, and the party who signed it. Further disregarding all other solution lanes, additional bidders, and of course the important first step of a baseline historic reconciliation.
ALL acts of ALL government officials SHALL be lawful, rational, proportionate and procedurally fair.
Someone should take that constitutional guarantee out for a spin. Our parliament is not in fact supreme. Our government even less so. It would be interesting to see how they explain their conduct, especially given that competing overseas territories have not implemented the regime.
I would like to illustrate with a day to day common example:
A Settlor creates a fiduciary entity in the Cayman Islands to protect his legacy , he transfers the assets to the entity in due form and the beneficiaries are his minor children, at the time there is no BOR etc.
At some point the Setlor passes away, his estate in his fiscal residence is taxed and divided between his descendants. Estate Tax is paid in full by the descendants as the law requires in his home country.
Now thanks to the madhouse for lack of a better word at 33 fort street , the tax authorities and the ICIJ whom WILL mirror the database contents in minutes go after the children as at the moment of they obtain the information from the Registry. No such assets were declared to the tax authorities as the value of the assets weren’t disclosed to the beneficiaries as the trust is a confirmed and irrevocable instrument.
Now his children can be dragged in the muck of multiple hit pieces from people that have NO accountability whatsoever thanks to the Cayman Island Government and freedom of the press have a free pass to defame his descendants!
The damage to the reputation will be lasting and the descendants bearing a mark of infamy without any appeal or defense from the public media arena.
Following the hit piece the tax authorities come knocking at the descendants door asking for the assets of the Trust whom they are the beneficiaries of after obtaining confirmation of their presence as beneficiaries by the database which is now open , the assets in question being held by the fiduciary have been well managed by the Setlor and his estate managers and have grown but cannot be sold or disposed of to settle tax dispute, saddling the beneficiaries with a heavy fiscal burden and a reputation now beyond repair .
Having been defamed by the hit pieces they have as a result lost their jobs and banks will expediously break their relationships with the descendants, recalling loans and not providing bridge loans to face the fiscal onslaught over time .
Some member nations of the OECD tax assets from trusts up to 90 percent of the assets value at the moment of the passing of the Setlor and the tax in some cases can be applied retroactively ! Imagine now that the setlor has participated in the funding rounds of a now publicly listed company on the Nasdaq stock exchange but those shares while valued at market value cannot be traded as they are of a specific class with a multiple of voting rights to the company’s board, ensuring the descendants of the setlor keep control of the company’s future.
Now the madhouse at 33 Fort Street, in order to score brownie points with the FATF and the OECD has agreed to open up the registry to parties that “in the name of public interest” will strike down innocent parties and bereaving children !
Congratulations CIG ! This IS the LEGACY of this circus of the present administration the lack of foresight is remarkable to say the least for in no shape or form did you envision the consequences !
Some speak here of court battles, let me remind them that in many cases the member nations of the OECD have ABSOLUTE priority to tax the assets of the Setlor , the bank accounts, portfolios etc are in escrow and therefore cannot be liquidated even in part by the beneficiaries until estate taxes are paid in FULL. The appeal process will take about 6 to 10 years depending on the jurisdiction of the Setlor! I fear that the benevolent lawyers here on island will surely take on the case to address the matter both on island and in the country of residence of the deceased setlor pro-bono until final deliberation of the courts !
Need I go on ?
I vaguely recall a real world example of this, where the beneficiary was a child minor with special needs that had to somehow come up with over a million bucks because of an estate liability they weren’t even old enough to understand or know about. Crack open that piggie bank, kid!
This does seem rather short-sighted. Why were the trust experts not advising government on the apparent negative ramifications of this?
7:26 pm, i will tell you why, because the people who we have entruxted with the governance of these oslands dont have a clue and in their slim defense were elected by persons who know even less of what obtains in the realm of government and the responsibilities we assign to these geese called Parliamentarians. to go a bit further the World Class service another pile of geese is just as bad for they at least could should i say under normal circumstances have the necessary expertise to advise the Minstrel geese. Going yet a bit further, neither the latter or the first tier geese seem to understand that consultation with Indystry should have been the first tier of info gathering rather than dealing with a Knight in shadow Armor, no disrespect meant.
so All in all and to put it midly, consider this another Clusterfark of the Independent Under Pot Membership (UPM). Salute!!
This is what the FCDO and the Governor pushed for because Londin is losing sooo much money to offshore tax friendly places like Cayman Islands.
And Julianna swallowed it up hook line and sinker like a big grouper.
In one stroke of the pen, she has doomed the Cayman Islands’ whole economy, and I say entire economy because financial services makes up for 70 percent of the economy, and the other 30 percent cannot fill the void after financial services dries up.
Those poor trust fund beneficiaries 😂
Jeezum pea
When will ur all end
And how???
“Welcome, fellow citizens, to the Grand Parade of Transparency and Tribulations, orchestrated by none other than your beloved Ministry of Silly Walks! Let us embark on a highly metaphorical journey through the Registry of Beneficial Ownership, a veritable labyrinth of good intentions gone hilariously awry. Grab your umbrellas and galoshes, for this road is slippery with scandal and potholed with pretense!”
1. The Registry: A Glittering Disco Ball of Drama
The Ministry presents the registry as a dazzling disco ball—reflecting light in all directions, but only so that everyone can see their distorted reflections and groan in unison.
Picture it: the registry spins, and a journalist, like a moth to a flame, flutters toward the nearest shiny name. They whip out their pen, sharpened to a rapier point, and begin the timeless dance of Assumption Waltz. Their headline? A symphony of scandal, carefully tuned to make the innocent look suspicious and the suspicious look like saints.
Metaphor:
“It’s like putting your laundry out to dry during a hurricane—everything, even your cleanest shirts, comes back soaked and tangled in someone else’s mess!”
2. Guilt by Association: A Game of Musical Chairs
Ah, the registry—where every name is a chair, and the journalist spins the music, stopping only when someone’s reputation collapses. Innocent business structures? “A sinister cabal!” Family trusts? “Secret fortresses of untold wealth!”
Once the music stops, no one escapes unscathed. Whether you’re a hardworking Caymanian entrepreneur or an overseas philanthropist funding orphanages, your ‘chair’ is now the hottest seat in the room.
Metaphor:
“Imagine hosting a backyard barbecue, only for the Ministry of Silly Walks to label it a secret summit of barbecue overlords plotting the rise of illegal marinades!”
3. Journalists with Axes to Grind: Lumberjacks of Reputation
Journalists, armed with the registry, swing their axes wildly, not caring if they’re chopping down a diseased tree or the family’s last mango tree. Context? Nuance? These are mere pebbles in their boot—kicked aside as they march toward their next sensational byline.
Metaphor:
“It’s like handing an untrained lumberjack a chainsaw and pointing them at a forest: sure, some deadwood gets cleared, but they’ll probably bring down the village water well while they’re at it!”
4. The Reputation Sinkhole: A One-Way Ticket to Infamy
Once your name lands in a headline, the Ministry guarantees that you’ve entered the sinkhole of public perception. You’ll never climb out—not because you’re guilty, but because mud sticks better than water washes.
• Your name in the registry becomes a tattoo of insinuation.
• Your reputation is the piñata at the journalist’s birthday party—strung up for everyone’s entertainment.
• Your defense? A mere whisper in the hurricane of outrage.
Metaphor:
“Trying to clear your name after a journalist’s hit piece is like trying to mop up a flood with a tissue. The dam has already burst, and you’re left soaked and swearing!”
5. The Long-Term Damage: A Leaky Canoe Down the River of Infamy
The registry is not a fleeting squall; it’s a river of long-term erosion, slowly washing away the solid banks of honor. Every misreported headline, every half-truth spun into a scandal, is another leak in the canoe of your reputation. Paddle fast enough, and you might stay afloat—but the Ministry warns, the current of public judgment is strong.
Metaphor:
“Your name becomes the soggy cardboard box left in the rain—once sturdy, now too weak to carry even the lightest burden of public trust.”
6. Transparency’s Trojan Horse: A Comedy of Errors
Transparency sounds noble, doesn’t it? A bright light in dark corners. But this registry is no beacon—it’s a Trojan Horse stuffed with ill-defined ‘legitimate interest.’ Behind its wooden façade hides a chaotic troupe of bad actors:
• Journalists chasing clicks rather than truth.
• Competitors digging dirt to fuel corporate sabotage.
• Foreign powers mining data to tighten the reins of neo-colonial oversight.
Metaphor:
“It’s like selling fireworks to a clown army and acting surprised when the whole tent catches fire!”
7. Privacy: The Delicate Vase Shattered on the Floor
Once upon a time, privacy in Cayman was like a beautiful glass vase, kept safe and admired. Now? It’s been hurled to the ground, shattering into pieces under the heels of ‘progress.’ The registry lets anyone stomp through the shards, shouting, “Transparency!” as if that excuses the mess.
• Honorable people are left sweeping up the pieces of their integrity.
• Dishonest players? They’ve already skipped town, leaving their fake names behind.
Metaphor:
“The vase is broken, the water’s spilled, and the flowers are wilting—but at least someone brought a flashlight to admire the wreckage!”
Closing Sermon: A Silly Walk Toward Absurdity
So, dear citizens, as the Ministry of Silly Walks, we offer you this guidance:
• Don’t run toward the registry—it’s quicksand disguised as progress.
• Beware the lumberjack journalists—they swing indiscriminately.
• And remember, in the grand circus of compliance, it’s always the honest clowns who slip on the banana peel.
Metaphor:
“The registry is a leaky umbrella in a storm of bad intentions: it neither shields you from the rain nor stops the wind from blowing your reputation inside out!”
In addition to the concerns raised here about the definition of legitimate access, I don’t understand why we would possibly volunteer to be a first mover on this – what about all of the other jurisdictions? What is BVI doing? The channel Islands?
Why would we give ourselves a competitive disadvantage unless we had absolutely no other choice?
The court battles on this will be interesting.
Hopefully the courts will put a stop to this nonsense and then we can say to the UK that our hands our tied.
That is truly our only hope.
Jeffery Jowell?? the same “expert” that lost twice in court defending the unlawful CPA actions?
Something smells fishy here with Jowell involved.
Where else has he advised successfully on beneficial ownership???
this is a disaster, or the start of the major disaster for Cayman.
Well, thinking about it now, there have been many disasters in recent years for Cayman including Julianna, Alden, Bulgin, Joey, Dwayne, Kenneth, Jay, Saunders, Mac, Bernie, Ezzard just to name a few
Order in Council was standing by. We waited too long to leave any real world wiggle room.
So, as I understand it, anyone who declares they have a “legitimate interest” (no proof of legitimacy needed) has to be given the information. And if this is truly the EU standard, how come it doesn’t apply in the UK and the rest of the EU? Conclusion: This is NOT right, and Cayman leaders are fools to accept it.
The UK has had full public access to beneficial owners of UK companies since 2016.
To be fair, their deal drills down to nominee shareholders rather than UBOs. We should have opted for that nonsense OECD version too, while “semblance of compliance” was on offer. Too late now.
Weeeeell, not exactly.
Perhaps, if you believe Donald Duck and Mickey Mouse are the beneficial owners of companies.
The UK registry is self reported, meaning it’s full of junk information with no validation. The CI registry has actual verified information.
Will not be surprised if ICIJ or some other group team up and just search every company and add to their online data dump.
For less than a few million dollars they can pretty much scrub the entire registry. Smart move!
Yup. Expect the full database to be mirrored online for free in perpetuity within hours.
Journalists able to view BO = potential landslide of negative media to Cayman internationally and potentially very angry clients of financial service providers.
Very stupid move on numerous levels and could be catastrophic to the Cayman economy that relies heavily on the financial sector to prosper.
Private client business in Cayman is tiny in comparison to offshore funds, but that too is a couple bad choices away from redomiciling..
How many hundreds of nominee companies does Dart use every day? We might all have a legitimate reason to ask.
If you have evidence of financial crimes, go for it.
I am at a complete loss of words given the vagueness of the definitions used here … it’s an open door for full disclosure in the name of country’s XYZ people’s right to be informed dear sir !
And then the contents will be mirrored in multiple databases, ready for use including by less well intentioned parties !
It won’t take long or much to see it happen. This will not be limited to law enforcement and will be lead to the departure of High Net Worth individuals or families that have made Cayman Islands their home !
Our legislators just opened Pandora’s box of multiple occurrences of the Paradigm Papers and they probably have very little idea 💡 about the wake of such a decision !
I am sure the OECD , FATF and al are very much pleased of such a development as they will have full access and be free to practice confiscatory taxation for some of them !
Cayman islands made a huge strategic mistake and it will quickly result in a great loss of revenues for future governments ! The bloat of the CIG will suddenly become a non sustainable burden and that will likely lead to taxation for all , whether they are caymanians or not!
The island can also kiss the FFR goodbye and that will trigger further people to leave altogether as the CIG will be stuck in a deficit loop as well as an ever increasing debt !
What JUJU and cohort have signed will have long lasting effects, i would not be surprised that some specific stakeholders are already short selling cayman’s current debt and they would be in their right to do so !
Jail JOCC for thievery and violating her fiduciary obligations to ghe Cayman Islands.
Instead of the new Brac school, 60 million could have purchased ALL of Barkers Beach.
If Dart tries anything funny. down zone all of his land to 1 dwelling unit per 12.5 acres. Problem solved.
Bad move Cayman Islands
8 members absent? They don’t need to show up for the one or two little meetings they have?
Anyway, bad move. Should have remained at the law-enforcement level only. Prepare for mass exodus of registered companies.
GOOD RIDDANCE
That’s an idiotic mindset. But sure, Ok… have fun with whatever little crumbs of the pie you have left.
The income loss could be catastrophic if the exodus is high. So… good riddance to CIG easy money (for doing nothing), less money for needed services, less money for pensions, less money for health care, less money for infrastructure. Yep, Mr/Ms POSITIVE CHANGE – you’ve thought this one out; but I do also suspect you would vote for your highly educated Ministers who guide this rock.
Idiot.
The ones that might leave don’t hire Caymanians nor do they contribute nearly enough to our economy to make us care.
Juju is a disaster no matter what portfolio she is in charge of at the time!
Her decisions will now allow for many fishing expeditions by unqualified organizations who could never secure the information from the UK.
Wish they had BO regs when we were in high school.
giving access to journalists is wild