• legal and beneficial ownership (section 2 of the Action Plan/consultation document);
• a central register of beneficial ownership information (section 3); and
• corporate transparency (bearer shares), (section 6).
• US FATCA and UK FATCA;
• being an early adopter to the Common Reporting Standard (including the Cayman Islands signing of the multilateral agreement on automatic exchange of information in Berlin on 29
• our high-level participation in the Global Forum for Transparency and Exchange of
• the extension to Cayman of the Convention on Mutual Administrative Assistance in Tax Matters.
• amend the Cayman Islands Companies Law to abolish bearer shares;
• codify express definitions of ‘beneficial owner’ and ‘control’1; and
• improve the reliability of the eligible introducers regime.
• enact legislation that will require CSPs to produce beneficial ownership information to tax, regulatory and law enforcement authorities within a target turnaround time of 24 hours in circumstances where such information is required.
• require an annual filing of legal ownership information of Cayman Islands exempted companies with the General Registry of the Cayman Islands by their corresponding CSPs (akin to the annual filing already required of Cayman Islands ordinary resident companies), with appropriate exemptions (e.g. publicly listed or regulated companies);
• require CSPs to designate a natural person locally to be accountable to Cayman Islands authorities for the availability of ownership information and the monitoring/testing thereof at specified intervals; and
• enact legislation to allow relevant Government agencies/authorities to wind up an entity (either regulated or unregulated) that has not complied with legal or beneficial ownership requirements within a specified timeframe.

1. Conduct, and share the findings of, a national assessment of money laundering and terrorist financing risks by 2015, through co-ordinated action by the public and private sectors to assess risks, apply resources and mitigate those risks.
2. Further evaluate established policies and legislative measures to ensure that information on the ownership and control for companies and express trusts continues to be effectively and accurately maintained, and that this information continues to be readily available to the appropriate authorities.
3. Conduct an assessment of whether a central registry of the beneficial ownership and control of companies is the most appropriate and effective way to improve transparency in support of domestic legal compliance and the implementation of cross border assistance in accordance with internationally adopted and implemented standards during 2015.
4. Continue the longstanding supervision of those who execute company formation in the Cayman Islands, and keep the regulatory regime under review.
5. Conduct a review of supervision and regulation of the financial services sector, including category A and B banks, during 2015 to establish effectiveness of supervision and enforcement of existing rules on beneficial ownership.
6. Further review corporate transparency including the use of bearer shares (all of which are already immobilised and subject to regulation in the Cayman Islands) as recommended in the Phase 2 Peer Review Report by the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes, by 2014.
7. Maintain our high standards of international cooperation, including the timely and effective exchange of basic and beneficial ownership information on legal persons and arrangements.
8. Continue to negotiate and enter into international tax cooperation agreements and arrangements under the entrustment of the United Kingdom, where appropriate, including tax information exchange agreements and double taxation agreements; intergovernmental agreements in support of automatic exchange of tax information (such as under the United States Foreign Account Tax Compliance Act); and the Convention on Mutual Administrative Assistance in Tax Matters.

Cayman Rejects Beneficial Ownership Registry

by Mike Godfrey, Lowtax.net, Washington

The Cayman Islands has published a new report stating that, while it will not introduce a central registry of information on the beneficial ownership of companies, it will tighten up its beneficial ownership regime in other areas.

The report follows industry consultation between November 2013 and February 2014 and broadly concludes that the territory's existing regime is adequate and already complies with international standards and in particular the recommendations of the Financial Action Task Force (FATF).

Under the current system, Corporate Service Providers (CSPs) have been required to maintain details of the beneficial owners of companies since 2000. The report notes that this information is already available to law enforcement and tax and regulatory authorities upon request.

The Cayman Islands is to make a number of changes to its arrangements this year however. The key changes proposed include the banning of bearer shares (negotiable instruments that accord ownership in a legal person to the person who possesses the bearer share certificate, which have been immobilized since 2001), and a new requirement for CSPs to designate a natural person resident in the Cayman Islands to be responsible for responding to requests for beneficial ownership information and the monitoring and testing of information held at specified intervals.

The report also includes an undertaking to enact legislation requiring CSPs to produce beneficial ownership information to tax and legal authorities within 24 hours; to codify a definition of relevant terms such as "beneficial owner" and "control;" and to enable Government agencies and authorities to wind up an entity (either regulated or unregulated) that has not complied with legal or beneficial ownership requirements within a specified timeframe.