Archive for the ‘Cayman government’ Category

CIMA signs MoU with American insurers group

Tuesday, August 14th, 2018

The Cayman Islands Monetary Authority (CIMA) signed a memorandum of understanding (MoU) with the National Association of Insurance Commissioners (NAIC) with a view to help insurance supervisors in the US and Cayman Islands coordinate on regulatory issues with the goal of efficient, fair, safe and stable insurance markets. According to a press release from CIMA, signed on August 4, the agreement encourages a formal framework to provide mutual assistance and exchange of information to coordinate compliance in each jurisdiction.

CIMA Managing Director Cindy Scotland said that the memorandum of understanding was a significant milestone in the CIMA’s ongoing collaboration with the regulators of the world’s largest insurance market. She noted: “I am confident that this agreement will strengthen the relationship between the NAIC and the Authority. It will also provide stronger capabilities for each organisation to achieve our common goals of economic stability and consumer protection”.

CIMA said it has established good working relationships with various state regulators within the US and other regulatory, standard setting bodies outside of the Cayman Islands.

To date, CIMA has entered into 55 bilateral agreements and 6 multilateral agreements with regulatory authorities, including the International Association of Insurance Supervisors and US Banking regulators (Federal Reserve System Board of Governors, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Office of Thrift Supervision).

CIMA’s regulatory powers extended

Thursday, August 9th, 2018

The Cayman Islands Monetary Authority (CIMA) has said that a Privy Council decision made in July 2018 has confirmed the regulator’s powers to compel non-licensee Cayman-registered companies“>Cayman-registered companies to give up information on behalf of other overseas regulators under the authority’s 2018 Law.

According to a press release issued by CIMA, the Judicial Committee of the London-based court refused Select Vantage Inc.’s application to appeal a decision of the Cayman Islands Court of Appeal, which had found in CIMA’s favour last year.

“In refusing Select Vantage Inc.’s application, at the very first stage, the Privy Council has effectively and clearly affirmed the Court of Appeal’s earlier ground-breaking decision regarding CIMA’s powers. This decision acknowledges that CIMA has powers to obtain information from a non-licensee Cayman Islands registered company on behalf of another overseas regulator under the Monetary Authority Law 2018,” the Authority said.

Select Vantage Inc. is a Cayman Islands registered exempt company operating as a proprietary trading firm, which currently is not a licensee of CIMA. It was under investigation by the Australian Securities and Investments Commission (ASIC) for potential market manipulation and the Cayman Authority sought information for that regulator.

In 2017, CIMA was asked by Australian officials for information about the company for its investigations and CIMA obtained a Grand Court order obliging Select Vantage to hand over details of its traders. The firm challenged the order, arguing among other things that it was just a subsidiary and did not have the details requested. But the Cayman Islands Court of Appeal found in CIMA’s favour and rejected Select Vantage’s claims.

CIMA Managing Director Cindy Scotland noted the importance of the Privy Council’s decision and the affirmation of the authorities powers “to require information and documents in response to a proper request from an overseas regulatory authority whether the company or companies involved are licensed by CIMA or not”.

Cayman Government promises no new taxes

Friday, June 8th, 2018

Cayman Finance Minister Roy McTaggart told a recent Chamber of Commerce economic forum that no “coercive revenue measures” will be introduced during the Cayman Government’s term in office, which ends in 2021.

The Minister said that the undertaking was intended to give the private sector comfort, certainty and confidence.

McTaggart also noted that the government of the Cayman Islands is committed to reducing taxes in areas that will promote economic growth, as well as to reducing the cost of doing business and the cost of living for residents.

Cayman issues Guidance on Compliance with CbC Reporting, FATCA, CRS

Tuesday, April 10th, 2018

New guidance on the obligation on large multinational groups to file a country-by-country report in the jurisdiction and also an update on Common Reporting Standard and US Foreign Account Tax Compliance Act reporting have been released by the Cayman Islands.

On March 29, guidance was released by the Cayman Islands’ Department for International Tax Cooperation (DITC) alongside the release of:

– The CbCR Notification Template (in CSV format);
– The Authorisation Letter Template; and
– The CbC XML Schema User Guide (Draft).

The guidance provides an overview of the OECD’s recommendations and of the Cayman law underpinning the CbC reporting regime (the Tax Information Authority Law (2017 Revision)), explains the obligation to notify which entity will file the CbC report, sets out the filing deadlines, how to complete the CbC report, and how the Cayman Islands intends to share the information required multilaterally.

The Cayman Islands recently pushed forward the deadline for filing CbC reports. The deadline was March 31, 2018, for those groups with fiscal years beginning in 2016 between January 1 to March 31, 2016. It was then required within 12 months of the end of any fiscal year, for those fiscal years beginning after March 31, 2016. The Ministry of Financial Services and Home Affairs has now announced the following: “A Reporting Entity resident in the islands must make its first CbC Report by May 31, 2018, if the CbCR Regulations require it to make its first CbC Report on or before May 31, 2018.” This provides additional flexibility specifically for those whose fiscal period begins in the first five months of the year.

In a separate announcement, the DITC announced that it has reopened the automatic exchange of information (AEOI) portal for notification and reporting in relation to the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS).

The deadlines are:

– April 30, 2018 for notification (i.e. enrollment);
– May 31, 2018, for reporting for the 2017 calendar year.

Cayman eases deadline for CbC Reporting

Friday, February 16th, 2018

Authorities in the Cayman Islands have pushed back the deadline for notifying local authorities of which entity will file a country-by-country (CbC) report, and for filing the first reports.

On February 2, 2018, the extensions were announced as well as a confirmation was made that in early March 2018 CbC reporting guidance will be released and the Cayman CbC reporting portal will be launched.

Under the notification obligation, the reporting entity of an MNE Group with constituent entities resident in the Cayman Islands must appoint the individuals as the “Primary Contact” and the “Secondary Contact” for those constituent entities. The Primary Contact may be an agent of the reporting entity while the Secondary Contact must be a fiduciary or management-level employee of the Reporting Entity. Neither the Primary Contact, nor the Secondary Contact must be resident in Cayman.

The CbC Report must be made via the CbCR Portal by uploading an XML file in the format prescribed by the OECD.

The CbC report is one element of a new 3-tiered standardized approach to transfer pricing documentation proposed under BEPS Action 13. Under the framework, MNEs are required to provide aggregate information annually for each jurisdiction where they do business, relating to the global allocation of income and taxes paid, together with other indicators of the location of economic activity within the MNE group. The reporting covers information on entities doing business in a particular jurisdiction as well as the business activities each entity engages in.

Budget of Cayman targets Budget Surpluses

Saturday, November 4th, 2017

The Cayman Islands’ Premier, Alden McLaughlin, recently delivered the Cayman Islands’ first 2-year budget, which was notable for the absence of new borrowing or revenue-raising measures.

According to McLaughlin, his administration will continue to pay down debt and deliver operational budget surpluses to fund capital investment plans and provide for contingency against future economic shocks. He noted that taking the path of “fiscal responsibility” is crucial to giving businesses the confidence to invest in the jurisdiction.

Measures introduced previously to support economic growth will be maintained, including reduced import duties, lower business licensing fees, development concessions, and other measures to support small business. Also, the Government has committed to slashing at least 25% of regulations hindering small business.

McLaughlin reported on his recent visit to Brussels ahead of the EU’s planned year-end announcement to name jurisdictions it considers are not complying with global tax good governance standards. He said he explained about the reasons for the territory’s tax regime focusing on indirect taxes instead of direct taxes and outlined how the territory complies with OECD regulations, which he said places it in the same league as Germany, Canada, and the UK.

McLaughlin explained that the Cayman Islands has no double tax treaties allowing for the shifting of tax liabilities, and that businesses operating in the territory understand their obligation to pay taxes due in their home jurisdictions.

New Cayman financial services minister to advocate for offshore sector

Wednesday, July 26th, 2017

The new financial services minister of the Cayman Islands began her work as a voice for Cayman’s offshore sector during the recent visit to the United Kingdom for the Brexit meetings with the overseas territories. Tara Rivers was also advocating for the financial services industry, which she now has responsibility for in the new coalition government.

Rivers discussed Brexit, beneficial ownership and the EU screening process with both UK officials and industry leaders. Also, the minister visited the Embassy of China in order to discuss regulatory cooperation and China’s “One Belt, One Road” initiative.

According to an official release, “The Cayman Islands has always engaged with UK Government and industry on matters of bilateral and global importance”. Rivers emphasized the focus on “reinforcing the strength of our financial services framework by clearly addressing the legacy myths that affect our reputation among political leaders”.

Rivers was not alone in advocating for Cayman’s lucrative offshore sector, as Scott remained in Britain for two weeks, where he engaged with the international press as well as financial sector stakeholders in London.

“Cayman Finance, in conjunction with the Ministry of Financial Services, is constantly working to ensure we maintain strong and beneficial relationships with key international figures in the financial services industry,” Scott said. “It is important for us to keep reminding these stakeholders of the Cayman Islands’ role as a premier global financial hub and the ways in which we benefit developed and developing countries around the world. We are always grateful for the Cayman Islands Government’s support in these ventures.”

“The combined efforts of Cayman Finance, the Cayman Islands Government and our regulator, the Cayman Islands Monetary Authority, ensure that our financial services products and services are consistently delivered to meet or exceed our international clients’ expectations through excellence, innovation and balance,” Scott said. “We are extremely proud of the work that the Cayman Islands does both locally and worldwide, and will always seize the opportunity to spread our message around the globe.”

Cayman-registered beneficial owners accessible to UK

Tuesday, July 4th, 2017

In the beginning of July, the new legislation came into effect in the Cayman Islands that will allow UK law enforcement authorities to access details of the beneficial owners of all financial entities registered in thejurisdiction.

The new technology-based system enhancement to the beneficial ownership regime will allow those with legitimate rights or reasons to have access to do so in a more efficient and timely fashion, with speed being the crucial point. The information is not in a central public register but this is a platform allowing direct access to the RCIPS Financial Crimes Unit so they can respond to requests.

Officials said a system had been in place for more than 15 years that provided beneficial ownership information to the United Kingdom and other countries through legal means, but the new system will increase the speed in which that information is provided.

However, the government has insisted that the system is not very different from the process in place for many years but the efficiency improvement satisfies the UK’s demand for immediate access in criminal cases.

“Financial crime is a serious global problem that requires a unified global response,” Rivers said. “As a jurisdiction, the Cayman Islands continues to play a significant role on international regulatory issues and for implementing global practices to fight financial crime; we have been recognised for decades as a strong international partner in combating corruption, money laundering and tax evasion.”

The UK wanted to have this access back in 2015. As a result, Cayman and the UK agreed in April 2016 to improve the exchange of beneficial ownership information, as outlined in a document called the Exchange of Notes and Technical Protocol. All UK Overseas Territories entered into similar agreements. Since then, Cayman has passed amended legislation, new regulations and guidance notes for industry in order to provide the legal framework upon which the system was enhanced.

Four year AML/terrorist financing plan announced in Cayman

Monday, May 29th, 2017

Following the shortcomings identified previously by the Financial Action Task Force (FATF) and in Cayman’s regulatory regime to address emerging threats and vulnerabilities in the financial sector, the attorney general Samuel Bulgin said a strategy has been developed ahead of the next FATF review. In a short statement the government’s chief lawyer, Bulgin said that significant progress had been made on anti-money laundering and terrorist financing but more work needed to be done before that review which will take place later this year.

He said: “The government recognises the need to take ongoing measures to update the AML/CFT regime to address the full range of risks relating to money laundering, the financing of terrorism and proliferation to the Cayman Islands and to communicate its strategy to relevant stakeholders”.

Responding to the threats and vulnerabilities identified in the recently published National Risk Assessment (NRA), a 4-year Anti-Money Laundering and Counter Terrorist Financing Strategy has been developed. According to Bulgin, the strategy will ensure that the jurisdiction has a “robust, adaptive and responsive AML/CFT framework, consistent with international standards, and effective in maintaining the integrity of the Cayman Islands’ financial services system”.

Cayman Premier in London to promote offshore sector

Wednesday, March 1st, 2017

Premier Alden McLaughlin will be promoting the Cayman Islands, including its offshore sector, in London.

The delegation left on March 1 and will return to Grand Cayman on March 8, 2017.

Premier has been invited to deliver an address at a conference at Blackstone Chambers, entitled, “Current Issues in Rule of Law and International Trade and Development”. Also, he will be attending the event hosted by the well-known barristers chambers, to meet with the overseas territories minister, Baroness Anelay, and other British officials.

The conference will be chaired by Blackstone Chambers’ Sir Jeffrey Jowell QC, who advised the PPM during the shaping of the Cayman Islands 2009 constitution. Other guest speakers include Michael Llamas, Attorney General of Gibraltar; Justice Angelica Nussberger, Section President and German Judge on the European Court of Human Rights; and Justice Catherine O’Regan, former member of the Constitutional Court of South Africa and Director of the Bonavero Institute of Human Rights at Oxford.

According to McLaughlin, the conference would give him “an opportunity to say what the Cayman Islands has done in respect of having an advanced bill of rights, an independent judiciary, anti-corruption provisions and how our government has worked to enact and enforce laws against money-laundering and tax evasion”.