16 Jul 2020

Changes to Beneficial Ownership Requirements Introducing New Fines

Effective from 29 June 2020, the Cayman Registrar of Companies has the authority to impose administrative fines for companies that breach specified beneficial ownership provisions of the Companies Law and the Limited Liability Companies Law.

Beneficial owners and other entities in the ownership and control structures of entities that are within the regime's scope must cooperate in providing relevant information to the relevant in-scope entities or will be subject to the fines being introduced.

The penalties start at CI$ 5,000 (US$ 6,100) for the initial breach. If the breach continues a further monthly fine of CI$ 1,000 (US$ 1,200) can be imposed, up to a maximum of CI$ 25,000 (US$ 30,500) for a single breach. The Registrar has also been given the power to strike a company if an administrative fine imposed remains unpaid for 90 days.

If you have any questions or would like to discuss this further, please get in touch with your usual IMS/CFS/SHCS contact.

About the Author
Ruan van Vuuren is an independent fund director at IMS in the Cayman Islands and can be contacted at rvanvuuren@ims.ky.

IMS is one of the longest established company management firms in the Cayman Islands. IMS is licensed by the Cayman Islands Monetary Authority to provide independent directors, company management and incorporation, mutual fund administration, captive insurance and trust services. For more information about our services, please contact us.

Disclaimer: this publication does not constitute legal or professional advice and should not be relied on as such.