Regulatory update – Cayman Islands
The Cayman Islands are implementing significant changes to the Beneficial Ownership Regime (BOR).
- Odyssey
The Beneficial Ownership Transparency Act, which came into force on 31 July 2024, expanded the scope of this regime and removed exemptions applicable under the previous regime. Private wealth structures will be now be impacted by the new BOR. Although trusts remain out of scope, their underlying corporate structures are impacted and it will be essential to analyze and determine who registrable persons are.
Under the new Act, a registrable beneficial owner is any individual meeting the following criteria:
- ultimately owns or controls, whether through direct or indirect ownership or control, 25% or more of the shares, voting rights or partnership interests in the applicable entity;
- otherwise exercises ultimate effective control over the management of that entity; or
- is identified as exercising control of that entity through other means.
In order to allow impacted entities to review their register of beneficial owners, the new requirements will only be enforced from January 2025.
