In an email to Industry Stakeholders dated 5 June 2017, the Chief Officer of the Cayman Islands (‘Cayman’) Ministry of Finance (‘Ministry’) reminds those Corporate Services Providers (‘CSP’s) who will be providing Beneficial Ownership Register (‘BOR’s) services for Cayman companies and limited liability companies (‘LLC’s) that they need to have their ‘information technology solution’ (‘IT System’) in place by 1 July 2017. The email is clear that this requirement is not subject to the same grace period as companies and LLCs.
Cayman Competent Authority
The email also advises that the Cayman Beneficial Ownership Competent Authority (‘CBOCA’) which will be using their IT System will soon be issuing CSPs with forms for access and access credentials as well as additional guidance and that CSPs need to send details of their organisation’s point of contact to as soon as possible.
Who needs to have a BOR in place?
On 7th April 2017, the Cayman Islands (‘Cayman’) introduced new legislation and regulations requiring all exempted companies and LLCs registered in Cayman (and their subsidiaries) to establish and maintain a BOR. Certain companies do not have to keep a BOR (they are 'Exempt') so it is important to look at the provisions in the new legislation to determine whether the requirement to establish and maintain a BOR applies to you.
What should affected companies do?
The management of such companies is urged to review their position and seek appropriate advice in relation to the effect on their business including in particular;
(i) who is a beneficial owner for the purposes of the register;
(ii) whether an exemption in the legislation applies or not. It is recommended that resolutions from the companies that determine that
they are exempt are passed to confirm that its Board has turned its attention to this, and why they have determined that they are
exempt. Adequate documentation for all steps of compliance with the BOR should be kept by the Directors; and
(iii) to the extent that compliance with the BOR regulations is required and the best way to achieve this.
Who needs to appoint a CSP?
A Cayman Ordinary Resident Company which is required to establish and maintain a BOR will need to appoint a Corporate Services Provider to assist with complying with the legislation and all ongoing requirements, unless it arranges to work through the Cayman Registrar of Companies to meet the requirements (for which it will be charged a fee). Any exempted company, non-resident ordinary company or companies registered as special economic zone companies under the Special Economic Zones Law, 2011 that currently do not have a registered Corporate Services Provider, must engage one to assist in establishing and maintaining their BOR if not Exempt.
Where can I find out more?
There is more information on our website in the article The Cayman Islands Beneficial Ownership Register: what you need to know, which has links to the legislation and other useful information from the Cayman Islands Government, such as its introduction to the centralised platform which to be set up and run by CBOCA (the Summary guide for Companies & Limited Liability Companies – centralised platform providing access to the Beneficial Ownership Information and its Guide for Beneficial Ownership Information File Format).