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.