The Cayman Islands tightens legislation to combat money laundering. According to the head of the Ministry of Finance, Tara Rivers, the innovations include five amendment packages. They are necessary so that the jurisdiction is not on the “blacklist” of countries with which it does not cooperate in the field of tax information exchange.

Prior to the amendments, some categories of funds may not have been audited. After the introduction of amendments, all organizations of this type will be required to undergo verification. In addition, for now, funds with 15 or fewer investors may not be registered with the Cayman Islands Financial Department (CIMA). Now they have to do it. The law provides 6 months for registration. Funds publishing false information about activities will be fined $120,000.

The rules for establishing a beneficiary have changed for companies. In particular, earlier, the organization was required to submit information, now the registration agent is required to establish the beneficiary. Agents must also maintain lists and keep records of ultimate beneficiaries.

Law&Trust offers services for companies registered in the Cayman Islands. We will tell about all the innovations and their consequences, as well as help to adapt the company or fund to the new legislative requirements.