The Cayman Islands’ new beneficial ownership regime, which went live on 31 July 2024, will not see any enforcement by the Ministry of Financial Services and Commerce until 1 January 2025.
In a briefing note by Maples Group on 2 August, the international law firm said the ministry “confirmed” the lack of enforcement as thousands of entities will now fall into the scope of the beneficial ownership regime for the first time.
Those already filing beneficial ownership details will need to review their reporting requirements under the new rules. Those who fall foul of the new regime could face significant penalties.
Maples said the ending of the previous Cayman Islands beneficial ownership regime has also seen the ministry suspending the requirement to file beneficial ownership information “until further notification”, allowing time for all in-scope legal persons to prepare for the new regime.
On 24 November 2023, the parliament of the Cayman Islands passed the Beneficial Ownership Transparency Act, 2023 which was later gazetted on 15 December 2023.
Following the Beneficial Ownership Transparency Act, 2023 (Commencement) Order, 2024, the act was brought into force on 31 July 2024, however, the ministry confirmed that there will be no enforcement of the Act until 1 January 2025.
