Archive for November, 2015

Direct access to Cayman company info wanted by UK

Monday, November 30th, 2015

The UK’s overseas territories minister has told the Cayman Islands premier that the British government wants direct access to companies registered in the jurisdiction for all of their law enforcement agencies. So far, the Cayman leader has refused.

As the dispute between the UK and its territories continues, the return of James Duddridge to the OT desk at the Foreign Office has seen a renewal of demands by the UK, dashing hopes raised by the acting minister, Grant Shapps, that access to beneficial ownership could be fulfilled via other means. In a statement to the Legislative Assembly, Premier Alden McLaughlin said beneficial ownership was not on this year’s agenda but there would be discussions with Duddridge.

The premier said that Duddridge had told him by phone that the UK was now seeking direct access by its law enforcement agencies to beneficial ownership information in the Cayman Islands and other overseas territories. McLaughlin said that the information wanted by the UK does not belong to the government of the Cayman Islands as it is property of the owners of the respective legal entities.

Concerned that anything else would place Cayman Islands at a competitive disadvantage, he stated that the jurisdiction was already complying with international standards, particularly as it relates to transparency and beneficial ownership information. He said: “We have demonstrated this full commitment in a number of meaningful ways, such as being an early adopter to the Convention on Mutual Tax Assistance and leaders in the implementation of US and UK FATCA as recent examples. However, what we are not prepared to do is to adopt a scheme which our competitors, some of whom are G20 member states, do not subscribe to, put ourselves at a competitive disadvantage and thereby cause our business to migrate to competitor jurisdictions.”

Previously, the British Prime Minister Cameron has stated that not enough is being done to tackle tax evasion by the UK’s overseas territories.

Money transfer business returns to Cayman

Friday, November 27th, 2015

The return of Western Union money transfer services to the Cayman Islands, which will once again offer local currency transfers, was made possible by the Cayman-based Scotiabank. It said it was willing to offer banking services to the firm’s partner, Grace Kennedy, a money transfer company it had worked with for decades, because it was comfortable with its compliance regime.

Meanwhile, JN Money Services Cayman (JNMS), which had the largest share of the lucrative remittance business in Cayman, is appealing to the Cayman Islands Monetary Authority (CIMA) to help it secure local banking so it can return to local currency services. In a letter to CIMA week, the company asked the authority to help them with currency exchange, hoping that following a meeting Friday CIMA would help provide the solution.

Brazil Concludes Four New TIEAs

Monday, November 16th, 2015

The Government of Brazil has submitted to Congress the tax information exchange agreement (TIEA) concluded with the Cayman Islands. This was announced by Brazil’s Ministry of Finance said on November 11, 2015.

Cayman has signed TIEA with Brazil in 2013, but it then had to come into force.

Cayman-based Herbalife posts 3rd-quarter profit of USD 93.6 million

Saturday, November 7th, 2015

Herbalife Ltd. reported 3rd-quarter profit of USD 93.6 million.

Cayman Islands-based company said it had net income of USD 1.09 per share. Earnings, adjusted for non-recurring costs and asset impairment costs, were USD 1.28 per share.
The seller of supplements and weight-loss products posted revenue of USD 1.1 billion in the period.

For the current quarter ending in December, Herbalife expects its per-share earnings to range 85-95 cents. Analysts surveyed by Zacks had forecast adjusted earnings per share of USD 1.07.

The company expects full-year earnings in the range of USD 4.65-4.75 per share.
Herbalife shares have climbed 53% since the beginning of the year. In the final minutes of trading on Tuesday, shares hit USD 57.85, an increase of 3.5% in the last 12 months.

Cayman Islands moves below US in Financial Secrecy Blacklist

Monday, November 2nd, 2015

The government of the United States’ refusal to take part in a global system for exchanging bank data has moved it above the Cayman Islands in a financial secrecy list compiled by the Tax Justice Network.

The U.S. refused to comply with information-sharing standards created by the Organization for Economic Cooperation and Development (OECD), according to London-based TJN, which campaigns for greater transparency in finance.

The Cayman Islands was placed 5th in the TJN rankings, which applies a weighted score to jurisdictions based on factors such as bank secrecy rules, registers of ownership and cooperation with other governments.