16/06/20

CAYMAN ISLANDS: Jurisdiction to fine breaches of beneficial ownership.

As published on internationalinvestment.net, Monday 15 June, 2020.

The Cayman Islands has announced it will be issuing penalties for any breach of its beneficial ownership reporting rules.

Starting 29 June, any Cayman Islands registered company will be fined up to $30,500 for a single breach of the rules governing reporting of beneficial ownership. However, most fines will start at around $6,500.

Penalties will be issued by the Cayman Registrar of Companies which will have the power to impose fines.

Any company that fails to pay the fine within 90 days risks being struck off the register altogether.

Under the current law, all limited liability companies in the Caymans should identify beneficial owners and provide details to their Cayman Islands corporate service providers.

Commenting on the change to the law, Maples, a locally-based law firm, said: "It is now important for all companies and limited liability companies to review their compliance with the beneficial ownership regime."

"This includes the accuracy of any beneficial ownership register or written confirmation of exemption maintained with their corporate services provider in the Cayman Islands."