CAPTIVE INSIGHT
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any entity that is licensed and overseen by
CIMA is exempt from providing beneficial
ownership information, in what one could
suggest is appropriate as CIMA will have
already completed enquiries and conducted
a full review of the shareholders and
directors. The large percentage of companies
deemed exempt from providing information,
however, raised concerns in the UK and the
framework was then adjusted to force the
exempted CIMA-licensed entities to report
certain details. Instead of actually stating
their beneficial owners, they are just required
to state the reasons for their exemption.
In the run up to the UK’s deadline for a public
register and a potential legal clash, debate will
continue over whether it will have any negative
impact on the financial services industry here.
The Cayman Islands, meanwhile, remains
confident in its approach and steadfast in
its contribution of fighting financial fraud
over a long time period, through being an
active and compliant international partner
in the fight against money laundering. “The
Cayman Islands takes its place as a leader in
global finance very seriously and recognises
that beneficial ownership information – not
provided publicly, but rather through proper
legal channels to relevant authorities – does
support the global fight against financial
crimes,” a Ministry spokesperson said.
“Government, therefore, has technologically
enhanced Cayman’s system, so that local
authorities have more timely access to
beneficial ownership information on Cayman
entities, in appropriate circumstances.”
As the tension increases between two
extreme positions, which seemingly will have
to come together at some point, it is difficult
to argue with Cayman’s record as a centre
of excellence in compliance and regulatory
scrutiny. Whether it will continue to be a
financial centre that protects the legitimate
privacy of its clients in the years to come
remains to be seen.
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