The Cayman Islands have recently made several amendments to the Companies Law and the Limited Liability Companies Law (collectively, the “Laws”). Under the new Laws, certain Cayman Companies and Cayman Limited Liability Companies are required to create and maintain a Register of Beneficial Ownership (“RBO”).
The Laws came into effect 30 June 2017; however clients have until June 2018 before the Laws are enforced.
The new regime comes as a result of an agreed commitment with the UK Government, by way of an Exchange of Notes in April 2016, by the Cayman Islands, together with other British Overseas Territories and British Crown Dependences, (such as the BVI, Bermuda, Anguilla, Jersey, Guernsey and the Isle of Man) to enhance existing arrangements on the exchange of Beneficial Ownership Information (“BOI”) geared to assist law enforcement agencies combating corruption, money laundering, and tax evasion.
Companies within scope
All Cayman Islands incorporated companies except:
- Companies listed on the Cayman Islands Stock Exchange or an approved stock exchange.
- Companies registered or holding a license under a “regulatory law”.
- Companies managed, arranged, administered, operated or promoted by an "approved person1" as a special purpose vehicle, private equity fund, collective investment scheme, or investment fund.
- A general partner of any vehicle, fund, or scheme referred to in the paragraph above that is managed, arranged, administered, operated, or promoted by an "approved person1"; or exempted by the regulations.
- A subsidiary2 of any of the above.
1,2 Please refer to Question 5 in our Frequently Asked Questions (FAQs).
How it could affect you
The new Laws have placed the onus to provide the necessary information on the Cayman companies and not their regulated Corporate Service Providers (“CSPs”). After June 2018, penalties and fines will be levied on the Cayman companies and beneficial owners who fail to comply with the requirements to establish and maintain a RBO.
How Vistra can support
If your Cayman Company is required to establish and maintain a RBO, Vistra Cayman, as a licensed corporate service provider in Cayman, can assist you with this process.
Vistra Cayman will support and guide you through this new process, a follow up email with further details will be forthcoming. In the meantime, please click here for our most Frequently Asked Questions (FAQs).