Internal whistleblowers:

The Fifth Circuit was the first federal court of appeals to examine the extent to which the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 protects internal whistleblowers, or those who report violations of the securities laws to their supervisors rather than directly to the SEC, from retaliation 


The destructive effort to combat money laundering,

If there is a demand for a good or service, whether legal or not, it will be supplied by someone. This basic fact of life is understood by most people, except for those who believe in utopia or are so power-possessed that they deny reality. All too often, attempts by government to ban or regulate an activity make the situation worse.   


Ukraine sanctions

The Cayman Islands, as a British Overseas Territory, has sanctions legislation enacted by a statutory instrument that is extended from the United Kingdom in this case the Ukraine (Sanctions) (Overseas Territories) Order 2014 which came into force on March 7, 2014, with immediate effect.2 


Thinking anew about information exchange and reporting

It is time to fundamentally reevaluate the information exchange and reporting system that has grown up over the past two decades and begin the process of considering how to better meet the needs of the people these laws are meant to serve. 


AML/CFT audit: What is appropriate?

For more than five years, entities conducting relevant financial business in the Cayman Islands have been required to maintain an appropriate internal audit function to test and evaluate its anti-money laundering and anti-terrorist financing system of controls.


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.

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.   


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.


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...

Compliance focus:

The initial and on-going risk assessment is the foundation of any compliance system regardless of its scope. There are a number of compliance processes reliant on country risk assessments and a reasonable methodology for country risk assessment is vital.   


Is my fund an investment entity/company?

In June 2013 the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-08, Financial Services – Investment Companies – Topic 946 – Amendments to the Scope, Measurement, and Disclosure Requirements (ASU 2013-08).   



Guidelines regarding beneficial ownership

A generally accepted definition of a “beneficial owner” is “someone who has a level of control over or use of funds or assets in an account, or has control of a company, which allows that person to directly or indirectly control or manage the account or company.”



G8 update

Main Story:   Guidelines regarding beneficial ownership At the June 2013 G8 meeting, the attendees signed a document that sets out core guidelines for the...

The convergence of anti-financial crime compliance

The convergence of anti-financial crime compliance is a much welcomed international development. It reflects a collective professional consciousness in this field, regardless of discipline, which is driven by logic and practical necessity.


The quiet politics of Basel

The new agreement on global banking regulation known as Basel III has generated a spirited debate in the banking community and the financial press.   


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. 


The challenges of FATCA compliance

A Model I Intergovernmental Agreement (IGA) has been initialed with the United States the Cayman Islands funds industry now has the necessary information to move forward with U.S. FATCA compliance.


Does your country have one?

In February 2012 FATF published its revised International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation where Recommendation 1 and its Interpretative Notes referred to the need for countries to conduct and produce an assessment of the risks, to update that assessment and to make it available. 


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.  


Why regulatory actions and criminal investigations are good for OFCs

In June 2010, I asked the owner of a Cayman registered agent to provide me with a copy of the register of members of a resident company, which any member of the public is entitled to – for a negligible statutory fee – under Section 44 of The Companies Law. He refused to do so, despite my repeated requests.


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