Proposed US federal tax legislation – impact on Cayman Islands captives

 There are a number of bills that have been introduced in the US Congress that, if enacted, could impact Cayman Island domiciled captives and/or their shareholders or affiliated group

Cayman decision on tax information exchange:

British Prime Minister David Cameron, told the House: “I do not think it is fair any longer to refer to any of the overseas territories or Crown dependencies as tax havens. They have taken action to ensure they have fair and open tax systems.

Accounting evolution for investment companies

Although there has been progress since the Memorandum of Understanding (MoU) was developed between the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) in 2002, today there continues to be differences between International Financial Reporting Standards and US Generally Accepted Accounting Principles (US GAAP) [Accounting Standards Codifications (ASC)].

Compliance: The battle of revenue and risk

We know that the financial services industry has been grappling with the cost of compliance for the last 10 to 15 years but a new era might be dawning with the elusive term “culture” being officially used in the term “culture of compliance.


Reforming the civil legal process

Sidebar Information:Just being civil – recent procedural reforms in other business hubsLike other jurisdictions, such as Ireland, Singapore and Dubai – which have sought...

No banking sector is an island –

A number of recent proposals highlight two worrying trends in financial services regulation: the increased tendency for countries to build walls around their domestic operations and the tendency of regulators in the largest markets to exert control outside their borders.  


Stupid or complicit? Neither

Some of the purported details contained in the FBI documents are so deliciously funny – the top soccer executive who claimed his only income was as a salesman for a “pet rock company” or that he was suffering from advanced dementia ...


The newly enacted Foreign Account Tax Compliance Act and its potential impact

 These new rules can affect both United States persons and foreign entities in significant ways and will have a direct impact upon all members of the Cayman financial industry whether they are trust companies, banks or investment funds.  

Post-crisis regulation and supervision of the biggest banks

Financial system policymakers around the world continue to respond vigorously to the problems in financial markets, financial institutions, and financial system regulation and supervision brought into high relief by the 2007-2009 global financial crisis.   


The disconnect between financial reporting and financial information needed for the preparation of US...

When a US taxpayer becomes a beneficiary of a foreign (non-US) trust, the type of trust accounting required for US tax reporting purposes is quite different than otherwise necessary. Many trustees find it difficult to comply with the elaborate type financial reporting needed.


Preventing conflicts of interest

Earlier this year, PwC was heavily fined by New York’s Department of Financial Services for “improperly altering” its sanctions and anti-money-laundering report for Bank of Tokyo Mitsubishi. This recent “whitewashing” case has reopened the ethical question concerning the way in which independent consultancy firms ...


The positive global role of jurisdictional competition and international financial centres

In the midst of an international recession, it hardly seems that this is an appropriate moment to express optimism. It also appears to be a poor time to give a pat on the back to legislators, especially since government mistakes such as misguided monetary policy and housing subsidies are responsible for much of the world’s current financial turmoil.

Further changes need further consideration

Given the intense political grandstanding that surrounded the G8 Summit in June, the likely benefit and cost of implementation of the various measures described was understandably hard to discern. 


China’s financial system: The tension between state and market

The recent turmoil in China’s stock markets reflects the topsy-turvy nature of China’s financial system — and the tension between state and market. Since 1978, the financial system has not kept pace with the march toward the market. 


Money laundering and financial crime:

It does not take long for a visitor to the Caymans to realise that the 1993 film The Firm still arouses the ire of those in the Cayman financial sector. Even today in certain circles Cayman is synonymous with money laundering and other financial misdeeds. Others however recognise that Cayman is far from the world’s money laundering haven and is in fact exploited by fraudsters because of its record of political and financial stability.

Repeal the anti-money laundering laws

We have four decades of experience with anti-money laundering laws in the Unites States starting with the misnamed Bank Secrecy Act of 1970 (not counting the state AMLs before that). Any objective analysis would question the effectiveness of our approach.


Playing the regulatory compliance game – or going out of business

Finance Professor Avinash Persaud argues that international regulatory compliance is a game imposed by large financial centres designed to close down Caribbean financial centres.


How do you ensure compliance?

How effective are your bank compliance processes and procedures? Do you have a systematic approach to compliance?   


Clouds on the horizon: A snapshot of the challenges facing Cayman’s financial industry

This despite hard evidence to the contrary from several respected sources – for example the Turner Review (p74, March 2009) which specifically acknowledges that ‘the role of offshore financial centres was not central in the origins of the current crisis’.

Key short term considerations for Cayman funds to be FATCA compliant

Back to Main Story:  The challenges of FATCA compliance for Cayman funds and their administrators Entity classificationEach foreign entity will need to determine if they are...
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