The mad rush It used to be commonplace for a voluntary liquidator to receive an urgent email or telephone call from a Cayman fund manager near the end of the calendar year to terminate a Cayman entity prior to the end of the calendar year. The actual decision to terminate did not usually arise overnight,…

Cayman fund managers must consider whether their fund management business is categorised as a relevant entity under the new Economic Substance Law of the Cayman Islands. One of the requirements is the directed and managed test, which requires that a quorum of the board be present in the Cayman Islands for board meetings.

Cayman fund managers must consider whether their fund management business is categorised as a relevant entity under the new Economic Substance Law of the Cayman Islands. One of the requirements is the directed and managed test, which requires that a quorum of the board be present in the Cayman Islands for board meetings.

The operators of Cayman Mutual Funds or Mutual Fund Administrators should document, either as a board resolution or other appropriate documentation (such as a supplement/update to existing policies and procedures or detailed appendix to an existing agreement, in the case of a delegation or reliance arrangement), the manner in which the services provider has met its obligation to maintain and implement Procedures

Even when appointing a friend (as a director, principal point of contact, anti-money laundering compliance officer, money laundering reporting officer or money laundering reporting officer), we may need to consider whether there are any statutory duties or other obligations for appointees and how execution or non-execution of the role may impact the reputation or profits of the entity.

Crypto is a rapidly emerging and exciting space. Some service providers in the crypto space offer verification of identity of investors by way of electronic or digital means. Such providers may partner with AML specialists located in different jurisdictions and are increasing the efficiency of the AML process by using sophisticated tools to digitally verify information. The result is that verification can be done in minutes rather than hours or several days or weeks utilizing a manual AML process

The private placement memorandum is not the only important document for a Cayman fund. Investors must also consider the importance of the articles of association, private placement memorandum and other material fund documents. This will help stakeholders to understand what type of contract may exist between them and the Cayman fund.

The Cayman Islands have checked all of the boxes when it comes to the identification, verification and maintenance of beneficial ownership information. This is evidenced by the general culture of compliance by directors, legal counsel, fund administrators and other service providers. It is also confirmed by the implementation of legislation and regulations requiring businesses to conduct due diligence and retain records and to file beneficial owner information with the Cayman Islands competent authority

Country by country reporting (CbCR) requires multinational enterprises (MNE) which meet certain criteria to file a country-by-country report (CbC Report) with tax administrations or tax authorities. The CbC Report provides a breakdown of the amount of revenue, profits, taxes and other indicators of economic activities for each tax jurisdiction in which the MNE group does business. CbCR only applies to MNE groups with annual consolidated group revenue of not less than a specified threshold amount in the preceding fiscal year (MNE Groups). The Cayman Islands has specified the threshold as US$850 million

Each person carrying out relevant financial business shall, for the purpose of ensuring compliance with the requirements set out in the Regulations designate a person at the managerial level as the Anti-Money Laundering Compliance Officer (“AMLCO”) and Money Laundering Reporting Officer (“MLRO”). A manager or official employed at managerial level must also be designated as the Deputy Money Laundering Reporting Officer (“DMLRO”) and who shall in the absence of the Money Laundering Reporting Officer discharge the functions of the Money Laundering Reporting Officer. As per the recent notice from CIMA, a natural person must be initially designated to perform these roles. The AMLCO may combine his role along with the MLRO role if the person is competent and has sufficient time to perform both roles efficiently and understands the roles and responsibilities of each function