In July, the Cayman Islands competent authority for beneficial ownership regulation published guidance notes on complying with beneficial ownership obligations in the Cayman Islands.

The move links to the creation of The Register of Overseas Entities, first announced in March 2016 as part of the UK’s measures towards transparency and anti-corruption, which came into force on August 1 in the UK. It requires overseas entities that own, or wish to acquire, certain real estate in the UK to declare and keep up-to date information relating to their beneficial owners and/or managing officers on an annual basis.

The guidance notes provided by the Cayman Islands competent authority for beneficial ownership must be adopted by ‘in-scope entities’, relating to the provision of required particulars and other information related to beneficial ownership obligations under Cayman Islands law.

The Cayman Islands beneficial ownership framework was prepared with stakeholder input and reference to international standards and best practices. Geoff Ruddick, Partner, Paradigm Governance Partners, explains that its aims are to support the preservation of the integrity of the financial sector, to strengthen the co-operation and information sharing between law enforcement agencies, and to ensure the Cayman Islands maintains its position as a premier financial centre.

Companies, limited liability companies, limited liability partnerships, beneficial owners and trusts, and corporate service providers should be aware of the General Registrar’s power to impose administrative fines for breaches and non compliance with the beneficial ownership regime.

For more information, contact the Paradigm team