Following the introduction of a new fine regime for breaches of beneficial ownership reporting requirements in the Cayman Islands earlier this year, the General Registry released its beneficial ownership enforcement manual. It can be found here.
In determining whether to impose a fine, the Registrar has stated that it will take into consideration the following:
- Whether a breach has occurred on a balance of probabilities
- The nature of the breach
- The explanation provided by the person or entity as a result of a warning notice issued by the Registrar
- Any other factor relevant to the case
The Registrar has stated that it values voluntary disclosure and any such disclosure will be taken into consideration.
Prior to the imposition of a fine, a warning notice may be issued by the Registrar to allow the person or entity an opportunity to remedy the breach identified within a specified time frame. The time frame is discretionary and can range from two weeks to a month.
Our earlier client alert on the new fines can be found here.