The Cayman Islands Beneficial Owner Regime requires Cayman companies (that are subject to the Beneficial Owner Regime) to take reasonable steps to identify any individual who is a beneficial owner of the company and all relevant legal entities that exist in relation to the company. In the execution of this process, it is anticipated that the information gathered and the status of confirmations to the company of required particulars may vary depending on the stage of the steps taken or to be taken to identify registrable persons. Cayman companies subject to the Beneficial Owner Regime must record the relevant status of the foregoing in their beneficial ownership registers. A description of how these entries will appear is set out below.
“No Registrable Person Identified”
A Cayman company shall note in its beneficial ownership register the words “no registrable person identified” to show that the company knows or has reasonable cause to believe that there is no registrable beneficial owner or relevant legal entity in relation to the company or the company has taken reasonable steps to identify all beneficial owners and relevant legal entities and has not, in the course of taking such steps, been able to identify any registrable person.
A Cayman company shall note in its beneficial ownership register the words “confirmations pending” to show that the company has identified a registrable person in relation to the company but that all the required particulars of that person have not yet been confirmed.
A Cayman company shall note in its beneficial ownership register the words “enquiries pending” to show that it is still in the process of taking reasonable steps to find out if there is anyone who is a registrable person in relation to the company.
“Restrictions Notice Issued”
A Cayman company shall note in its beneficial ownership register the words “restrictions notice issued” and the date of issue of the notice to show that it has issued the restrictions notice.
“Restrictions Notice Withdrawn”
Where a Cayman company withdraws a restrictions notice, the company shall note in its beneficial ownership register the words “restrictions notice withdrawn” to show that it has withdrawn the restrictions notice by giving a withdrawal notice and the date specified in the withdrawal notice as the date on which the withdrawal notice was given.
“Restrictions Ceased By Court Order”
A Cayman company shall note in its beneficial ownership register the words “restrictions ceased by court order” to show that the court has made an order under the Beneficial Owner Regime directing that a relevant interest in the company cease to be subject to restrictions and the date on which the court’s order takes effect.
Don’t Understand The Jargon?
The management of the relevant Cayman company should contact Cayman Islands legal counsel to clarify any of the above terms or to understand when an entry must be made in the beneficial ownership register. Otherwise, the company may inadvertently breach the foregoing requirements under the Cayman Beneficial Owner Regime.
About the Author
Alric Lindsay is a Cayman Islands corporate/funds lawyer and an independent fund director approved by the Cayman Islands Monetary Authority and licensed under The Directors’ Registration and Licensing Law. Alric also acts as voluntary liquidator to Cayman Islands entities. Alric can be contacted at firstname.lastname@example.org