Cayman Islands Tightens Its Grip on Beneficial Ownership Transparency

The Cayman Islands

a long-standing offshore financial center, is taking steps to increase transparency in beneficial ownership information. However, it's doing so with a cautious approach, balancing the need for greater openness with concerns about privacy.

A Measured Approach to Transparency

Until now, only law enforcement agencies had access to detailed information about company ownership in the Cayman Islands. The new regulations, set to come into effect on 9th December 2024, will allow broader access, but with significant restrictions.

What Does "Legitimate Interest" Mean?

The key to accessing beneficial ownership information will be demonstrating a "legitimate interest". This could include journalists, researchers, and organisations involved in anti-money laundering efforts. However, the specific criteria for establishing legitimate interest are still being defined.

Safeguarding Privacy

The Cayman Islands government has emphasised its commitment to protecting privacy. Individuals can apply for protection from public disclosure if revealing their association with a legal entity could pose a serious risk to them or their families.

A Global Trend

The move by the Cayman Islands is part of a broader global trend towards greater transparency in the financial sector. Many countries, including the UK, have implemented stricter regulations to combat money laundering, tax evasion, and other financial crimes.

While the Cayman Islands' approach is more conservative than some jurisdictions, it represents a significant step forward in terms of transparency and accountability. As the global regulatory landscape continues to evolve, it will be interesting to see how the Cayman Islands adapts to these changing dynamics.

For more information on the impact of these new regulations on your business or investments, please contact your Lloyds Accountancy advisor.