Arab Press

بالشعب و للشعب
Tuesday, Feb 24, 2026

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
GCC Secretary-General Holds Talks with EU Ambassador in Riyadh
Gulf States’ AI Investment Drive Seen as Strategic Bet on Technology and U.S. Security Ties
African Union Commission Chair Meets Saudi Vice Foreign Minister to Deepen Strategic Cooperation
President El-Sisi Holds Strategic Talks with Saudi Crown Prince in Riyadh
Lucid Unveils Up to $12,000 Incentive for Air and Gravity Models in Saudi Arabia
Saudi Arabia Enters Global AI Partnership, Expanding Its Role in International Technology Governance
Saudi Arabia’s Landmark U.S. LNG Agreement Signals Major Strategic Shift
Saudi Arabia Accelerates Global Gaming Push with Billion-Dollar Deals and Expanded PIF Mandate
Saudi Arabia Reports $25.28 Billion Budget Deficit in Fourth Quarter of 2025
Alvarez & Marsal Tax Establishes Dedicated Pillar Two and Transfer Pricing Team in Saudi Arabia
United States Approves Over Fifteen Billion Dollars in Major Arms Sales to Israel and Saudi Arabia
Pre-Iftar Walks Gain Momentum as Ramadan Wellness Trend Spreads
Middle East Jackup Rig Fleet Contracts Further After Saudi Drilling Suspensions
Türkiye and Saudi Arabia Prepare to Sign Five Gigawatt Renewable Energy Deal at COP31
King Mohammed VI Congratulates Saudi Leadership on Founding Day, Reaffirming Strategic Ties
US Envoy Huckabee Clarifies Remarks on Israel After Expansionism Controversy
Saudi Arabia Introduces Limited Exceptions to Regional Headquarters Requirement for Foreign Firms
Saudi Arabia Joins Global Partnership on Artificial Intelligence, Elevating Its Role in Shaping AI Governance
Saudi Arabia and Arab States Mobilise Diplomatically After U.S. Envoy’s Israel Remarks
Cristiano Ronaldo Reaffirms His Commitment to Saudi Arabia Amid Transfer Speculation
Proposed US-Saudi Nuclear Deal Raises Questions Over Uranium Enrichment Provisions
Saudi Arabia Sends 81st Aid Flight to Gaza as Humanitarian Air Bridge Continues
Global Games Show Riyadh 2026 Positioned as Catalyst for Saudi Arabia’s Vision 2030
Saudi Arabia Eases Procurement Rules, Allowing Foreign Firms Greater Access to Government Contracts
Türkiye and Saudi Arabia Seal Two Billion Dollar Solar Energy Agreement
Saudi Crown Prince Reportedly Sends Letter to UAE Leader Over Yemen and Sudan Policies
Saudi Arabia Voices Concerns to UAE Over Sudan Conflict and Yemen Strategy
Saudi Arabia Joins Global Artificial Intelligence Alliance to Strengthen International Collaboration
Shura Island Positioned as Flagship of Saudi Arabia’s Ambitious Red Sea Tourism Drive
Saudi Arabia Rebukes Mike Huckabee Over Remarks in Tucker Carlson Interview
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
Concerns Mount Over Potential Saudi Uranium Enrichment in Prospective US Nuclear Accord
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
Investability Emerges as the Defining Test of Saudi Arabia’s Next Market Phase
Saudi Arabia’s Packaging Market Accelerates as Sustainability and E-Commerce Drive Transformation
Saudi Arabia Unveils $32 Billion Push Into Theme Parks and Global Entertainment
Saudi Crude Exports to India Climb Sharply, Closing Gap With Russia
Saudi Arabia’s Halal Cosmetics Market Expands as Faith and Ethical Beauty Drive Growth
ImmunityBio Secures Saudi Partnerships to Launch Flagship Cancer Therapy
United Kingdom Denies U.S. Access to Military Base for Potential Iran Strike
Türkiye and Saudi Arabia Launch Expanded Renewable Energy Partnership
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
Mongolian Mining Family’s HK$247 Million Stanley Home Purchase Highlights Resilient Luxury Market
UK Intensifies Efforts to Secure Saudi Investment in Next-Generation Fighter Jet Programme
Saudi Arabia Tops Middle East Green Building Rankings with Record Growth in 2025
Qatar and Saudi Arabia Each Commit One Billion Dollars to President Trump’s ‘Board of Peace’ Initiative
Ramadan 2026 Prayer Times Set as Fasting Begins in Saudi Arabia and Egypt Announces Dates
Saudi Arabia Launches Ramadan 2026 Hotel Campaign to Boost Religious and Leisure Tourism
Saudi Arabia Seeks Reroute of Greece-Bound Fibre-Optic Cable Through Syria Instead of Israel
×