Archive for June, 2014

Fitch Rates assigns good ratings to RAKFUNDING CAYMAN LTD

Monday, June 30th, 2014

Fitch Ratings has assigned RAKFUNDING CAYMAN LTD’s (RAKFUNDING) USD 1 billion guaranteed euro medium term note (EMTN) programme expected Long- and Short-Term Ratings of ‘BBB+(EXP)’ and ‘F2(EXP)’ respectively. The assignment of the final ratings is contingent upon the receipt of final documents conforming to information already reviewed.

The ratings of Cayman-based company guaranteed EMTN programme are aligned with National Bank of Ras Al-Khaimah’s (RAKBANK) Long-term and Short-term Issuer Default Ratings (IDRs). This is based on Fitch’s expectation that RAKBANK (BBB+/Stable/F2), which fully owns RAKFUNDING, will support the debt issued under the programme, if required. RAKBANK has set up RAKFUNDING solely to issue debt under the programme. The likelihood of support is further evidenced by the guarantee provided.

Germany seizes tax evasion info documents from Cayman

Monday, June 23rd, 2014

German customs authorities in the Port of Hamburg have confiscated documents that may contain information about the accounts of suspected tax evaders. This was reported by German media on June 21.

Two containers with around 14,000 documents inside were confiscated at the end of May, with some coming from a branch of private bank Coutts, a subsidiary of the Royal Bank of Scotland, in the Cayman Islands, newspaper Welt am Sonntag said in an advance copy of an article due to be published on Sunday.

It was also reported that customs authorities confiscated a container of Coutts documents from the Cayman Islands on May 20. The information had been evaluated since then by the financial experts, searching for evidence of tax evasion.

According to a spokesperson for Coutts: “We are not aware of any investigation into our Trust Company or its papers and we are working with the authorities to allow these papers to continue on their way.”

Cayman Islands to sign TIEA with Colombia

Thursday, June 19th, 2014

The Cayman Islands and Colombia are to sign a Tax Information Exchange Agreement (TIEA) on July 1, 2014.

This will be Cayman’s 36th such agreement, and the 3rd one signed by the jurisdiction in 2014, with the Seychelles agreement being signed in February and an agreement with Belgium signed in April. Negotiations are currently underway with an additional 14 nations.

The TIEA will be in accordance with global regulatory standards.

The Tax Information Exchange Agreement between Cayman and Colombia is notable, as through this agreement, Colombia has recognised that the Cayman Islands is a jurisdiction of such significant transparency and regulatory standards to order its removal from Colombia’s Tax Haven List (Non-Cooperative Jurisdictions). Both jurisdictions have committed to the early adoption of the OECD’s Common Reporting Standard for automatic exchange of information, and are both members of the Global Forum on Transparency and Exchange of Information for Tax Purposes.

Insurance Managers Association of Cayman (IMAC) Chairperson Rob Leadbetter said: “We view Latin America, and Colombia in particular, as a solid market in the captive insurance space. This TIEA coming into effect reinforces Cayman as a viable option for Colombian companies looking for self-insurance alternatives as well as for investment funds and trusts. With only a handful of jurisdictions on this white-list, we are well-positioned to offer a valuable service to these companies.”

India bars Cayman hedge fund from securities trading

Tuesday, June 10th, 2014

India’s market regulator barred an offshore hedge fund based in Cayman Islands from dealing in local securities pending an insider trading probe after “abnormal movement” in L&T Finance Holdings Limited shares.

Factorial Master Fund locked in a profit of about USD 3.4 million by taking an “unusual and aggressive” short position in the futures and options segment before a planned share sale by L&T Finance, while in possession of the likely floor price of the offer. This was announced in an interim order by the Securities and Exchange Board of India (SEBI).

After being goaded by a court on April 30, SEBI intended to investigate a surge in the shares of Ranbaxy Laboratories Limited before an acquisition by Sun Pharmaceutical Industries Limited.