Ministry responds to Compass editorial

I would be grateful if you could publish this letter to clarify and correct two key points made in your editorial of March 8.

First, as the ministry recently discussed with local media, the internationally accepted recommendations of the Financial Action Task Force (FATF) does list centralized registers as one mechanism via which jurisdictions can maintain beneficial ownership information. This recommendation has been in place for several years, and currently there is an ongoing process by which jurisdictions are undergoing a fourth round of FATF peer reviews to assess the effectiveness of their chosen mechanism (as well as their adherence to the other FATF recommendations).

Second, the opinion issued by the European Data Protection Supervisor (EDPS) specifically addressed the issue of the proportionality and risk to privacy rights of public registers. However, regarding the already accepted and implemented standard for jurisdictions to maintain beneficial ownership information in non-public central registers or similarly effective systems, the EDPS opinion supports Cayman’s position of establishing a centralized platform that is not accessible to the public.

Dax Basdeo, Chief Officer, Ministry of Financial Services

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