A proposal to better regulate charities operating in the Cayman Islands that was panned by nearly every charitable organisation in the country last year will still go forward at some stage, Attorney General Sam Bulgin has indicated.
“We are currently in the process of conducting such a review following the recent receipt of further observations from some private sector stakeholders,” Mr. Bulgin said last week.
However, former Law Reform Commission Chairman Langston Sibblies, in a report sent to the Legislative Assembly this year indicated the group had effectively finished its review of the bill and had nothing further to add.
“The commission…is satisfied that its final report submitted on charities fairly articulated its views,” Mr. Sibblies wrote, adding that the commission accepts that not all of its recommendations will be accepted when it reviews issues surrounding a piece of legislation.
“[The Charities Bill] took into account the conditions existing within the local charities sector balanced against the international obligations of the Cayman Islands,” the reform commission report stated. No further modifications would be made to the final report of the commission, the group stated.
In general, local charities did not object to regulatory schemes proposed by the Law Reform Commission. The Cayman Islands government has tried to regulate charities for years because of international law enforcement agencies that see the potential to use such groups as a front for money laundering and terrorist financing.
However, there were several specific proposals that local charities thought should be changed, including some that the local financial services industry believed would have a negative impact.
The Humane Society expressed concern that the bill, as written, would foist additional administrative costs onto charities that may not be able to afford it.
Record-keeping requirements – that would have made charities keep written records for at least seven years – would create more expense and could create liability for volunteer members, the Cayman Islands Little League Association noted.
Meanwhile, the local churches worried about requirements in the bill that would make churches get an annual external audit, which they said would be too expensive.
Last September, Mr. Bulgin effectively stopped the proposal from coming to the Legislative Assembly and said a revised bill would be brought back at a later date.
Mr. Bulgin said he hoped a “sensible compromise” could still be achieved.
“It is clear that more needs to be done by government to clarify the object of the proposed law to further regulate the relevant charities as mandated by Cayman’s international obligations.
“It is not unreasonable for members of the public to harbour some anxiety in circumstances where, as is clearly the case here, there is a lack of clarity in what the law is seeking to achieve. It is incumbent on government to address the numerous concerns before attempting to move ahead with the Charities Bill.
“The government has no intention to destroy the enormous good will relating to charitable assistance. Indeed, the government continues to be very appreciative of the efforts of these charitable organisations and their donors.”
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