Michael Klein

Michael Klein, Photo-Journalist
Michael Klein

Editor – Business

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ARTICLES BY MICHAEL KLEIN

Government amends framework for exempted limited partnerships

Government is reducing the registration fees for exempted limited partnerships that are registered with the Registrar of ELPs within General Registry and regulated by the Cayman Islands Monetary Authority. The Exempted Limited Partnership (Amendment) Regulations, 2020 were gazetted on Friday, 22 May and took immediate effect.

CIMA revokes Hinduja Bank’s licence

The Cayman Islands Monetary Authority has revoked the banking licence of Hinduja Bank.

Bermuda copying Cayman’s pension cash-out

Bermuda is following a move by the Cayman Islands that allows residents to withdraw a portion of their pension savings to help them cope with the economic fallout from the COVID-19 pandemic.

Vox Royalty now trading on the TSX Venture Exchange

Cayman special economic zone company, SilverStream SEZC, which trades as Vox Royalty Corp has started trading on the TSX Venture Exchange in Canada after it closed its public offering and raised CDN$13.75 million (US$ 10 million).

Grants for small businesses largely untapped

During the current economic crisis, many small businesses are leaving free government assistance money on the table. The Cayman Islands Centre for Business Development has so far only received 320 applications for grants that pay struggling businesses three monthly payments of $1,000 as working capital support.

Businesses step up support

Within days of the border closure and shelter-at-home policies in place, Cayman’s business community reacted, with many donating to non-profits or launching their own initiatives in support of the needy.

Report: 254 private funds have registered with CIMA

The new requirement to register closed-ended, or private, funds with the Cayman Islands Monetary Authority has to date prompted 254 funds into action so far. Government enacted the Private Funds Law in January which gave closed-ended funds until 7 Aug. 2020 to register with CIMA and comply with Cayman’s investment funds regime.

First-quarter government finances better than budgeted

The Cayman Islands government has started the tumultuous economic period in the wake of the coronavirus pandemic with better than expected first quarter fiscal results.

Regulatory framework for virtual asset services adopted

Lawmakers this week passed a package of five bills to regulate virtual asset service providers. The Virtual Asset Service Provider Law, the central piece of legislation in the regulatory framework, demands that digital asset businesses must be registered with the Cayman Islands Monetary Authority.

Lawmakers pass raft of anti-money laundering bills

Members of the Legislative Assembly have adopted four bills related to Cayman’s regime for anti-money laundering and the countering of terrorism financing. Amendments to the Companies Law and the Limited Liability Companies Law introduce stricter administrative fines for Cayman’s beneficial-ownership regime, and ensure basic regulatory powers are listed on a company register and made available for public inspection.

Digicel files for US bankruptcy protection

Telecommunications provider Digicel has filed for Chapter 15 recognition in a federal bankruptcy court in the Southern District of New York after it was granted an application for provisional liquidation in Bermuda.

Funds and investors benefit from 2008 experience

The parallels to the 2008 crisis are evident. In March, both the losses and the hedge funds’ performance dispersion were almost exactly like 11 years ago.

Corporate tax reform agenda still set for end of the year

The discussions under the auspices of the OECD to reform corporate tax rules to deal with the challenges arising from the digitalisation of the economy and attempts to institute a global minimum corporate tax rate are still underway despite the COVID-19 pandemic.

HSM to buy Higgs & Johnson’s Cayman business

HSM Group has announced that it will acquire Higgs & Johnson in the Cayman Islands, subject to regulatory approvals. Higgs & Johnson said the negative impact of COVID-19, so closely after Hurricane Dorian in the Bahamas, the home jurisdiction of the firm, prompted “a careful analysis of its business operations”.

EU plans anti-money laundering authority, expands blacklist

The European Commission has published a six-point anti-money laundering action plan last week that includes the proposal for a new EU AML authority and better alignment of its third-country blacklist with the Financial Action Task Force list of non-cooperative countries and territories.

How does a 15% contraction feel? Like 2013 – only worse

Current economic projections predict recessions all over the world at levels rarely, if ever, seen before. The Cayman Islands, for instance, is facing a 15% contraction of its economic activity this year. But what does this really mean? In terms of economic activity, it would transport the islands back to where they were in 2013.
The Caribbean Utilities Company

CUC quarterly earnings drop

Caribbean Utilities Company's first-quarter net earnings of US$3.9 million were down by US$0.6 million compared to the same period last year, despite higher electricity sales and lower general and administrative costs.
Cayman’s courts have ramped up their emergency contingency plan to counter COVID-19 issues.

Parts of Customs and Border Control Law incompatible with Bill of Rights

The Grand Court has ruled that Section 9 of the Bill of Rights covering 'Private and family life' must be considered by the Immigration Appeals Tribunal when considering whether a person can remain on island.

Government proposes framework to regulate crypto services

The Cayman Islands government has issued a proposed legislative framework for virtual asset service providers that seeks to align the crypto space with international anti-money laundering standards.

Danish tax office seeks Cayman information in alleged fraud scheme

Denmark’s national tax authority, Skatteforvaltningen or SKAT, is seeking discovery from 21 corporate service providers in Cayman and the British Virgin Islands, whose clients are suspected of being involved in a US$2.1 billion tax refund fraud.

This week