The Cayman Islands is proactively advancing its AML/CFT regime with the commencement of the Beneficial Ownership Transparency Act, 2023. The updated legislation reinforces Cayman’s commitment to combat money laundering and terrorist financing locally and globally, the Ministry of Financial Services said in a press release.
In addition to the Act and Regulations, Guidance on Complying with Beneficial Ownership Obligations is available on the General Registry’s website.
To enhance compliance, the Act and Regulations bolster the efficiency and effectiveness of Cayman’s beneficial ownership framework, and provide clarity for all users, both in the private and public sector, the ministry said.
The legislation aligns with enhanced Recommendation 24 of the Financial Action Task Force (FATF) global standard, ensuring that competent authorities locally and globally have access to adequate, accurate and current information on beneficial owners of companies.
Lucy Frew, a partner in the Regulatory & Risk Advisory group at Walkers, said: “These are the most significant changes to the beneficial ownership reporting regime since it was introduced in the Cayman Islands in 2017. Many entities that previously had few or no obligations will have to take steps to comply.”
The ministry said stakeholders have responded positively overall to the Act, Regulations and Guidance, as a result of the ministry’s extensive consultation with industry, the public, government partners and international entities over the past three years.
Industry members are to suspend filing beneficial ownership information under the previous framework until the ministry notifies them to recommence filing under the new framework.
Enforcement relating to the new requirements in the framework will be suspended until early next year.
