Trust regulations come in effect

Cayman Compass is the Cayman Islands' most trusted news website. We provide you with the latest breaking news from the Cayman Islands, as well as other parts of the Caribbean.
Cayman Compass is the Cayman Islands' most trusted news website. We provide you with the latest breaking news from the Cayman Islands, as well as other parts of the Caribbean.

Two pieces of legislation that clarify Cayman’s regime for trusts are now in force, after the Private Trust Companies (Amendment) (No. 2) Regulations, 2019 and Trusts (Transparency) Regulations, 2019 were gazetted on Friday, 16 Aug.

The Private Trust Companies (Amendment) (No. 2) Regulations, 2019 provides clearer definitions for the protector and enforcer of a trusts, while the Trusts (Transparency) Regulations, 2019 notes that trustees of a Cayman trust must maintain the terms of the trust; deeds or other documents varying the terms of the trust and the names and addresses of the trustee, settlor, contributor, beneficiary, class of beneficiary, protector and enforcer.

The regulations support recent legislative measures to enhance transparency measures, such as disclosure requirements, for the trusts sector.

The gazettal of this legislation supports the legal framework to address the recommendations made in the Caribbean Financial Action Task Force (CFATF)’s March 2019 report on Cayman’s anti-money laundering regime.

The FATF will review the progress made by the Cayman Islands at its June 2020 Plenary to determine if positive and tangible progress has been made towards addressing the deficiencies identified.

Over the past five months, Cayman’s anti-money laundering regime has been strengthened by the passage of 14 laws: The Banks and Trust Companies (Amendment) Law, 2019; Trusts (Amendment) (No. 2) Law, 2019; The Companies (Amendment) Law, 2019; The Limited Liability Companies (Amendment) Law, 2019; The Limited Liability Partnership (Amendment) Law, 2019; Mutual Funds (Amendment) Law, 2019; Insurance (Amendment) Law, 2019; Building Societies (Amendment) Law, 2019; Cooperative Societies (Amendment) Law, 2019; Money Services (Amendment) Law, 2019; Trade and Business Licensing (Amendment) Law, 2019; Proceeds of Crime (Amendment) Law, 2019; Securities Investment Business (Amendment) Law, 2019; and the Directors Registration and Licensing (Amendment) Law, 2019.

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