Caymans Consults Public On Beneficial Ownership
by Mike Godfrey, Lowtax.net, New York
20 January, 2014
The government of the Cayman Islands announced on January 15, 2013 that it is seeking the input of industry, clients and the general public regarding beneficial ownership of Cayman Islands-registered companies.
According to a press release from the Cayman Islands Financial Services (CIFS), the purpose of this consultation is to ensure that appropriate mechanisms are in place to effectively maintain information on who owns and controls Cayman-registered companies, and that this information is readily available to appropriate authorities.
This consultation covers sections 2 and 3 and 6 of the Cayman Islands Action Plan to Prevent the Misuse of Companies and Legal Arrangements. The action plan was released by the government on June 18, 2013, in response to initiatives stemming from the UK-chaired G8 Summit. The plan commits Cayman to a review of the domestic financial services regime, to ensure that business conducted in the Islands continues to meet international standards on combating money laundering and the financing of terrorism.
"Transparency is important, on a local and global scale, because it is a means to mitigate financial crimes," the press release states. "It protects investors, as well as public revenue. Transparency also generates public trust in the integrity of our systems, and increases confidence in the stability of our jurisdiction."
The CIFS pointed out that the Cayman Islands' efforts to combat financial crimes have been recognized by third-party global bodies such as the Financial Stability Board and the Financial Action Task Force. "We will continue to evaluate further proposed changes in light of the intended benefits to law enforcement and tax authorities, the costs of implementation, and the potential impact on our competitive position," the CIFS says.
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