Arab Press

بالشعب و للشعب
Saturday, Feb 22, 2025

Cayman Signals Willingness to Abandon Corporate Secrecy – But Not Yet

Cayman Signals Willingness to Abandon Corporate Secrecy – But Not Yet

The Cayman Islands, one of the world’s most important offshore tax and secrecy havens, has said it will slowly move towards making public the names of individuals behind tens of thousands of companies registered in the territory.

But the three-island Caribbean jurisdiction, home to almost 65,000 people, insisted it would not be rushed. It will first watch as European Union countries make good on their commitment to introduce corporate ownership registries by 2023. In a  statement, the Cayman government said: “We will advance legislation to introduce public registers of beneficial ownership information when that occurs.”

Pressure on tax havens to abandon corporate secrecy follows several large data leaks that have thrown a rare spotlight on the inner workings of the offshore industry — exposed, in large part, by the Offshore Leaks, Panama Papers and Paradise Papers investigations from the International Consortium of Investigative Journalists. As a result,  jurisdictions like Cayman have been forced to consider public registries that show who ultimately owns all locally registered companies.

In the absence of such measures, corporate secrecy can be exploited by criminals ranging from drug cartels and sanction-busters to tax evaders and people traffickers. At the same time, small, remote jurisdictions can gain economic advantage by tailoring their laws to cater to wealthy corporations and individuals looking to set up shell companies and cloak their business affairs in secrecy.

In the past, Cayman Islands companies featured in some of the world’s biggest corporate scandals, and the territory was once a regional hotspot for drug smuggling and money laundering.

More recently, the islands’ offshore economy has focused on hedge fund management and insurance, though it came under fire in 2009 when Barack Obama, then a U.S. presidential candidate, described Ugland House, an office block where tens of thousands of Cayman companies were registered, as the “biggest tax scam in the world.”

Cayman’s latest transparency pledge was immediately welcomed by anti-corruption group Global Witness. Senior campaigner Naomi Hirst said: “This commitment from the Cayman Islands to reveal the real people behind companies on their shores shows how company transparency is now the global standard in financial integrity.”

The move comes almost 18 months after backbench members of parliament in the United Kingdom unexpectedly out-maneuvered the British government, passing a law that would eventually force corporate transparency on Britain’s overseas territories — 14 former colonies including leading tax havens such as the British Virgin Islands, Gibraltar and the Cayman Islands.

Each of the U.K.’s overseas territories operates as an almost entirely self-governing jurisdiction. Britain only rarely uses its powers to intervene, known as “orders in council.” In 1991, it did so to outlaw the death penalty, and in 2000, it acted again, decriminalizing homosexual acts.

British backbench members of parliament had hoped their 2018 law, which committed the government to another order in council, would force U.K. overseas territories to introduce public registries of ownership by 2020, but at the end of last year, British foreign office minister Tariq Ahmad explained that the government would not, in fact, require the measures to be in place until 2023.

“[Overseas territories will] be obligated to produce an operational public register by 2023. That is the current timetable,” he said in December.

However, the latest comments from Cayman Islands suggest the Caribbean jurisdiction may once again be looking to push back on this deadline.

Together with other overseas territories, Cayman reacted angrily to moves by British parliamentarians to intervene in its affairs last year. At the time, Alden McLaughlin, Cayman Islands premier, said he was considering a legal challenge to the legislation.

“We don’t want to wind up in a situation where every time the U.K. parliament disagrees with a decision in one of the territories, it has the power to legislate for us,”he said. “Then it is not just the issue of public registries, it is not just the future of our financial industry that is at risk, it is our very existence.”

Lorna Smith, then executive director of BVI Finance, an offshore industry trade group, said the U.K.’s move “smacks of colonialism.”

Defending their existing arrangements for guarding against corporate abuse and criminality, many overseas territories said they already held information on who secretly owned companies, and shared the details with overseas tax investigators and law enforcement when requested to do so.

A report published by the French parliament last week noted that following Panama Papers revelations in 2016, tax officials in France had started a large number of investigations, issuing 307 requests for assistance with their inquiries, 196 of which were sent to the BVI. However, the report noted, three years later, 176 requests remained unanswered.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advance.
Israeli Minister Urges Hamas to Surrender and Depart from Gaza.
Iran Considers Moving Its Capital Due to Urban Difficulties
Israel and Hamas Finalize Sixth Exchange of Hostages and Prisoners During Continuing Gaza Ceasefire
Leaders of BRICS to Gather in Rio de Janeiro for July Summit
Muhsin Hendricks, a trailblazing openly gay imam, was killed in South Africa.
Trump's special envoy for hostage affairs cautions Hamas against challenging Trump before Saturday's deadline.
Two British citizens apprehended in Iran amid escalating tensions.
Israel Issues Threat of Military Action as Hostage Negotiations with Hamas Continue
Hamas Coordinates Worldwide Solidarity Marches in Reaction to U.S. and Israeli Initiative
Israel Warns of Ending Gaza Ceasefire Due to Hostage Situation
King Abdullah II Dismisses US Proposal to Relocate Palestinians, Commits to Welcoming Gaza Children.
Lebanon Installs New Government with Hezbollah's Impact on Key Ministries
Report: Iran Attempted to Assassinate Trump During Election Campaign
U.S. Authorizes $7.4 Billion Arms Sale to Israel
Iran's Supreme Leader Rejects Nuclear Negotiations with the U.S.
UN Chief Denounces Trump's Gaza Plan, Cautions Against Ethnic Cleansing
Pressure Intensifies for a Free Trade Agreement between the UK and GCC in Light of Economic Difficulties
Israel to Withdraw from UN Human Rights Council Due to Accusations of Anti-Semitism
EU Reaffirms Gaza's Essential Role in Future Palestinian State Following Trump's Proposal
Iranian Currency Reaches All-Time Low Amid US 'Maximum Pressure' Initiative.
UN Reaffirms Ban on Deportation from Occupied Territories Amid US Gaza Proposal
Palestinians Fear Repeat of 'Nakba' Amid Ongoing Crisis in Gaza
UAE Aids in the Exchange of 300 Prisoners Between Russia and Ukraine
Egypt Seeks Global Backing for Two-State Solution Following US Proposal for Gaza Plan
Trump's Suggestion to 'Seize Control' of Gaza Represents a Significant Shift in US Policy
French President is the first EU leader to extend congratulations to the new Syrian President.
Tunisian President Appoints New Finance Minister Amid Economic Crisis
Trump Suggests U.S. 'Takeover' of Gaza, Prompting Global Worries
Trump's Proposal for Gaza Provokes Global Debate
President Trump Suggests Moving Gaza's Palestinian Population
Aga Khan IV, Spiritual Leader and Philanthropist, Dies at 88
Erdogan and Syria's Sharaa Talk About Collaboration to Counter Kurdish Militants
Trump Suggests U.S. Control of Gaza Strip Amid Ongoing Conflict
Trump Resumes 'Maximum Pressure' Strategy to Limit Iran's Oil Exports.
Ex-British Soldier Sentenced for Espionage on Behalf of Iran and Fleeing from Prison
Gazans in Egypt Reject Displacement, Struggle with Return to War-Torn Home
Queen Rania Urges Protection of Children’s Rights at Vatican Summit
Hamas Officials Ready to Begin Negotiations for Phase Two of Gaza Truce
Trump Expresses Caution Over Gaza Ceasefire as Netanyahu Visits Washington
Oman to Host 18th Indian Ocean Conference on Maritime Security and Trade
Emir of Kuwait Meets BlackRock CEO for Talks on Investment Opportunities
Queen Rania of Jordan Calls for Global Action on Children’s Rights at Vatican Summit
Egyptian President El-Sisi Invited for White House Meeting Following Jordanian King’s Visit
Queen Rania Calls for Protection of Children’s Rights at Vatican Summit
Israeli Military Operations Continue on Lebanon Border Amid Ceasefire Tensions
Israeli Hostage's Release Highlights Uncertainty Over Family's Fate
Israeli Military Operations Escalate in Southern Lebanon Amid Hezbollah Tensions
Zayed Award for Human Fraternity Announces 2025 Honorees
Kuwait Anticipates a 12% Increase in Budget Deficit for the 2025-2026 Fiscal Year
×