Parliament unanimously passed amendments to the Beneficial Ownership Transparency Act on Wednesday, 5 November.
The updates implement industry-requested changes to clarify compliance requirements and reduce administrative burdens on financial services firms.
Premier Andre Ebanks, presenting the Beneficial Ownership Transparency (Amendment) (No 2) Bill, 2025, said the changes followed feedback from businesses operating under the framework introduced in December 2023.
“They have essentially said we’ve been operating under the framework for a brief period of time, and we can see where we need necessary clarifications and precision to make sure the intended outcomes work as we have conceived them,” Ebanks said.
The bill received full support from the opposition, with legislators agreeing on the need to maintain Cayman’s compliance with international standards while reducing unnecessary burdens on legitimate businesses.
Key amendments
The legislation introduces several significant changes to the beneficial ownership framework.
Non-profit organisations will be exempt from the act as they are already supervised under separate legislation, while new protections ensure beneficial ownership information relating to minors cannot be released under public access regulations.
Companies that are subsidiaries of listed entities must now provide the name of their parent company when reporting – a requirement from the previous framework that helps authorities understand corporate structures.
The CI$5,000 administrative fine becomes a maximum rather than a flat penalty, allowing the registrar to impose lower fines for inadvertent breaches or technical difficulties while maintaining the full penalty for complete non-compliance.
The legislation also clarifies procedures for issuing restriction notices when entities fail to comply with information requests, providing a clear 30-day timeline for responses.
The amendments expand provisions for sharing beneficial ownership information with foreign authorities that have similar responsibilities for combating money laundering or terrorist financing.
This includes government departments or public authorities seeking information in the context of potential or actual business relationships with Cayman entities, following consultation with relevant local bodies.
International standards maintained
Ebanks emphasised that the amendments align with Financial Action Task Force standards, requiring that beneficial ownership registers contain “adequate, accurate and current” information.
The premier also addressed Cayman’s position on information sharing, noting the jurisdiction maintains its stance of providing data to foreign law enforcement, anti-money laundering and tax authorities when there is suspicion of illicit activity.
“We see that as appropriate sharing of information where the suspicion of bad actors or illicit activity, not for general public consumption for any reason whatsoever,” Ebanks said, referring to the ongoing difference in position between Cayman and the UK on public registers.
The amendments follow extensive consultation with industry stakeholders, including the Cayman Islands Compliance Association, the Cayman Islands Directors Association and regulatory lawyers, who contributed to refining the framework since its initial implementation.
Ebanks thanked these practitioners, noting that while they do not work on “the sexier transactions” they do “the guts of what makes it work and ensure that business is sound and legitimate”.
