Transparency Initiatives in the
Cayman Islands
Mr. Dax Basdeo, PhD Chief Officer
Ministry for Financial Services
Cayman Is...
Overview
• Transparency – Principles vs. Mechanisms
• Principles
– Adequacy
– Accuracy
– Timeliness
• Mechanisms
– Issues ...
Cayman’s Commitments
• 36 TIEAs
• Multilateral Convention on Mutual
Administrative Assistance in Tax Matters
• US FATCA
• ...
Beneficial Ownership
Transparency
• FATF 24: Countries should ensure that there is
adequate, accurate and timely informati...
Cayman Model for BO EOI
TCSP
LCA FCA
FCA
FCA
FCA
LCA
LCA
LCA
Legal Entity Gov’t Register
Competent Authorities
- Tax
- Reg...
BO EOI - Adequacy
TCSP
LCA FCA
FCA
FCA
FCA
LCA
LCA
LCA
• Basic info, BO info
• Types of entities
• Exemptions
• Threshold ...
BO EOI - Accuracy
TCSP
LCA FCA
FCA
FCA
FCA
LCA
LCA
LCAverification consistency
query specification
Cayman:
• Regulatory sa...
BO EOI – Timeliness
TCSP
LCA FCA
FCA
FCA
FCA
LCA
LCA
LCAtimely updating
• disclosure rules
• turnaround time
• on request;...
Need for further debate…
• Privacy vs. Secrecy
– Cultural acceptance
– Personal security
– Fair Treatment
• Due Process
• ...
Upcoming SlideShare
Loading in …5
×

Transparency Initiatives in the Cayman Islands

79 views

Published on

  • Be the first to comment

  • Be the first to like this

Transparency Initiatives in the Cayman Islands

  1. 1. Transparency Initiatives in the Cayman Islands Mr. Dax Basdeo, PhD Chief Officer Ministry for Financial Services Cayman Islands Government 20th June 2016
  2. 2. Overview • Transparency – Principles vs. Mechanisms • Principles – Adequacy – Accuracy – Timeliness • Mechanisms – Issues for debate and discussion
  3. 3. Cayman’s Commitments • 36 TIEAs • Multilateral Convention on Mutual Administrative Assistance in Tax Matters • US FATCA • UK FATCA • OECD’s Common Reporting Standard • EOI for Beneficial Ownership with the UK* • Initiative for Automatic EOI for BO
  4. 4. Beneficial Ownership Transparency • FATF 24: Countries should ensure that there is adequate, accurate and timely information on the beneficial ownership and control of legal persons that can be obtained or accessed in a timely fashion by competent authorities • G20: improve implementation, including availability and exchange • “[A public] registry itself is not a solution if it is not properly fed with information” – Pascal Saint- Amans
  5. 5. Cayman Model for BO EOI TCSP LCA FCA FCA FCA FCA LCA LCA LCA Legal Entity Gov’t Register Competent Authorities - Tax - Regulatory - Law Enforcement - Fin. Intelligence Unit Local Foreign Trust and Corp Services Providers
  6. 6. BO EOI - Adequacy TCSP LCA FCA FCA FCA FCA LCA LCA LCA • Basic info, BO info • Types of entities • Exemptions • Threshold for disclosure Cayman: • Retrospective due diligence • 10% vs. 25% Int’l Standard • Abolished bearer shares
  7. 7. BO EOI - Accuracy TCSP LCA FCA FCA FCA FCA LCA LCA LCAverification consistency query specification Cayman: • Regulatory sanctions incentivise TCSPs • Strengthening DNFBPs • Guidance to FCAs
  8. 8. BO EOI – Timeliness TCSP LCA FCA FCA FCA FCA LCA LCA LCAtimely updating • disclosure rules • turnaround time • on request; automatic; spontaneous Cayman: • Confidential Information Disclosure Law • Tightening eligible introducer regime – 1 week • Electronic reporting platform – < 24hrs
  9. 9. Need for further debate… • Privacy vs. Secrecy – Cultural acceptance – Personal security – Fair Treatment • Due Process • Speed of change – Inclusiveness vs. exclusiveness – Uniformity • Data security

×