The Ministry of Financial Services, Commerce and Environment introduced 11 bills into the Legislative Assembly to strengthen Cayman’s regulatory framework, provide for new financial services vehicles and improve the business environment.
A number of these bills are in preparation for the Caribbean Financial Action Task Force’s (CFATF) evaluation of Cayman’s Anti Money-Laundering/Counter-Financing of Terrorism (AML/CFT) regime later this year and to facilitate the Cayman’s beneficial ownership information exchange agreement with the UK.
The Companies Management (Amendment) (No. 2) Bill, the Companies Amendment (No. 2) Bill and the Limited Liability Companies (Amendment) Bill provide for companies incorporated in Cayman to establish and maintain internal beneficial ownership registers, which may be searched by a competent authority through a central access platform.
The Cayman Islands Limited Liability Partnership (LLP) Bill will introduce the LLP business structure and is designed to increase the attractiveness of the Cayman Islands to professional service providers and to develop potential new lines of business for international clients.
The Foundation Companies Bill will introduce a new type of corporate vehicle that is governed by Cayman Islands company law but functions like a civil law foundation. An FC may have no shareholders and may entrench its objects.
The Limited Liability Companies (Amendment) (No. 2) Bill, the Trusts (Amendment) Bill, the Exempted Limited Partnership (Amendment) Bill and the Tax Concessions (Amendment) Bill delegate the authority of Cabinet to the Cabinet Office in respect of processing tax concession certificates and create an administrative electronic process for the issue of certificates.
In regards to the local business environment, the Trade and Business Licensing Amendment Bill, 2017 amends the Trade and Business Licensing Law, 2014 to clarify and extend the Trade and Business Licensing Board’s functions and its relationship with the Department of Commerce and Investment (DCI).
The bill also aims to include examples of agricultural products that are exempt from the law such as jams, jellies or sauces; remove the requirement for police clearance certificates for those with an interest in listed or regulated companies; provide proper classification for pay day loans; and allow utility bills to be substituted for bank references.
The Legal Practitioners Bill, which was introduced at a previous Legislative Assembly sitting but deferred for further public consultation, seeks to modernise the regulation of the practice of law and includes provisions to address the Financial Action Task Force (FATF) Recommendations.