ESTABLISHED 1965 www.caymancompass.com – 75 CENTS – FRIDAY MAY 4, 2018 SEVEN MILE BEACH WATERFRONT WALKERS ROAD TOWN CENTRE PLAZA RED BAY How it happened: The UK House of Commons vote BRENT FULLER bfuller@pinnaclemedialtd.com A swirling vortex of political gamesmanship, played against the backdrop of a crucial Brexit vote and a weakened U.K. coalition gov- ernment, left the Cayman Islands and its sister British Overseas Ter- ritories on the losing end of Tues- day’s House of Commons vote. The vote to amend Britain’s Sanctions and Anti-Money Laun- dering Bill to force British Over- seas Territories – but not U.K. Crown Dependencies – to make registers of company owners public, may fundamentally change both Cayman’s financial services business model and its relation- ship with the Mother Country, of- ficials on both sides acknowl- edged this week. The amendment to the bill, which now goes to the House of Lords for a largely procedural vote, will require all 14 remaining British territories to make ben- eficial ownership of companies registered in their respective ju- risdictions public. Cayman has such a registry now, but it can only be inspected by certain per- sonnel for the purposes of specific law enforcement or tax compli- ance requests. If the territories do not adopt the prescribed measures, the amendment requires the U.K. gov- ernment to draft orders in council to force the territories to make company registers public. “We do not want to legislate directly for [the overseas territo- ries], nor do we want to damage our long-standing constitu- tional arrangements which re- spect their autonomy,” Sir Alan Duncan, MP with responsibility for the U.K. Foreign and Common- wealth Office said Tuesday. “How- ever, we’ve listened to the strength of feeling in this House on this issue and accept that it is, without a doubt, the majority view of this House that the overseas territo- ries should have public registers ahead of it becoming the interna- tional standard.” Storm brewing The push to “open up” company ownership registers in both the U.K. and its territories was first proposed by former British Prime Minister David Cameron and his then-Chancellor of the Exchequer George Osborne in 2013. Various iterations to put that proposal into legislation, mostly led by U.K. Labour Party politi- cians, were made over the past two years. Attempts to insert it into the Criminal Finance Bill before the House of Commons failed in April 2017 and a separate attempt to in- sert it into the House of Lords ver- sion of the anti-money laundering legislation failed again in January. However, Cayman Islands Betrayal! FROM THE EDITORIAL BOARD It was a political plot worthy of Shakespeare – no, Machiavelli – pens dipped in a toxic alloy of deception and deceit. While Cayman and its elected leaders slept during the early morning hours of May 1, a cabal of British politicians gathered with the explicit intent of doing great harm to these Cayman Islands – the very islands which, through tradition and law, they are entrusted to protect. These were little men – not only in political stature, but especially in character – small actors playing out their roles on the grandest of stages – the Palace of Westmin- ster in London. What they did constitutes an act of betrayal unworthy of the once- great country they represent. For the benefit of latecomers to this drama, we strongly advise that they read carefully the story on this page below this editorial. It re- counts in considerable detail the se- cretiveness and the sleaziness of our British brethren as they willfully and maliciously conspired against their own territories, Cayman fore- most among them. What is important, but not yet widely known, is that Cayman’s leaders, including our premier, had an understanding with U.K. leaders that any legislation going forward would treat our competitors in the financial services industry “equally.” Without notice, debate or discus- sion, British MPs broke that pledge, exempting their “dependencies” (in effect, giving sanctuary to Jersey, Guernsey and the Isle of Man) while punishing the British territories in the Caribbean by forcing them, under threat of imposing their will via an “order in council,” to reveal publicly (think Google) the own- ership of companies within their jurisdictions. In other words, Parliament’s ac- tions are particularly helpful to their nearby dependencies and par- ticularly harmful to their faraway territories, especially those such as Cayman, Bermuda and the British Virgin Islands, whose economies are dependent on their financial ser- vice industries. Further, in a particularly galling statement, the U.K. has declared that it plans to promote and promul- gate “public registers” as the “global standard.” That’s an ambitious un- dertaking since, to date, the U.K. is the ONLY country in the world with a “public registry,” which, im- portantly, comprises unverified in- formation, meaning it is practically worthless. Britain’s task is as fan- ciful as it is impossible: The “major players,” such as the United States, Russia and China, would never open their records to such regulatory (and tabloidy) voyeurism. Nevertheless, to spread this leg- islative virus, the U.K. hopes to join with international monetary and regulatory bodies, including the OECD – a mortal enemy of off- shore centers and, particularly, the Cayman Islands. When Jesus was on the cross, he stated benevolently, “Father, for- give them for they know not what they do.” No such claim can be put forth for the U.K. parliamen- tarians. They knew exactly what they were doing. Sir Alan Duncan, MP with responsibility for the Foreign and Commonwealth Of- fice, warned that the vote would “disenfranchise” the elected rep- resentatives of Britain’s Overseas Territories and would “potentially damage their long-standing con- stitutional relations.” On first view, there are two ob- vious “victims” of Parliament’s per- fidy in the Cayman Islands: ■■ First, our offshore financial industry itself. ■■ Second (and far more conse- quential), our ongoing relation- ship with the United Kingdom. It is too early to assess the po- tential damage to our financial in- dustry, but it is not too early to recognize that the most sacred com- ponent binding Britain and the Cayman Islands – trust – has been grievously, cavalierly and purposely breached. It is not unlike a caregiver who becomes an abuser. It is a credit to the people of these islands that their reaction to such Parliamentary infidelity has been swift and unequivocal. Per- haps Premier Alden McLaughlin, speaking first, spoke best and spoke for all: “The actions of the House of Commons in seeking to legislate for the Cayman Islands amounts to constitutional overreach, and are reminiscent of the worst in- justices of a bygone era of colo- nial despotism.” The path forward for these is- lands is at this early moment un- charted and unsettled. What is evident, however, is that perhaps now more than any time in our 500-plus-year history, these is- lands are in need of a leader to unite us and guide us along our upcoming journey. That leader may well be our premier, or perhaps someone who has yet to emerge. Perilous times historically have engen- dered leaders from the most un- likely of places. PLEASE TURN TO PAGE 6 » Big Ben and the Houses of Parliament in Westminster Palace in London. Members of Parliament passed an amendment to the Sanctions and Anti-Money Laundering Bill on Tuesday that will require Cayman and other British Overseas Territories to create public beneficial ownership registries.2 LOCAL NEWS FRIDAY MAY 4, 2018 • CAYMAN COMPASS Brunch & Breakfast till 3pm, Saturday & Sund ay! Cimboco - A Caribbean Café 94-PASTA (947-2782) Located in the Marquee Plaza Happy Mother’s Day WE ARE MOVING! Our George Town branch is moving its headquarters to 17 Vibert Bodden Drive (off Shedden Road). caymanfirst.com Section of West Bay Road to close temporarily The portion of West Bay Road between Lawrence Boulevard and the Galleria Roundabout will be tempo- rarily closed overnight on Saturday and Sunday. The road is being closed to facilitate the installa- tion of beams on the under- pass extension, according to Dart Real Estate. Residents and employees and customers of busi- nesses operating in the road closure zone will have lim- ited access, gaining entry from the Galleria Round- about for properties and businesses north of the underpass and from the Lawrence Boulevard en- trance for those south of the underpass. The road will close from 10 p.m. on Saturday until 9 a.m. Sunday and again from 10 p.m. Sunday until 7 a.m. Monday. CORRECTION A story titled “Conch, whelk, lobster and game bird sea- sons close” which ran in Thursday’s Cayman Compass er- roneously reported that Nassau grouper season is also closed. In fact, the Nassau grouper season opened on May 1 and will continue until Nov. 30. During open season, only grouper 16-24 inches long can be taken from Cayman wa- ters. The catch limit is five per boat per day. $23K donation for Cancer Society Frederic Morineau, executive chef for The Ritz-Carlton, Grand Cayman, left, and Peter Dutton, managing director of Jacques Scott, present Jennifer Weber, operations manager of the Cayman Islands Cancer Society, with a check for $23,749.76 on Wednesday afternoon. The donation consisted of proceeds from the Cayman Cookout event that took place in January at The Ritz-Carlton. In the heart of the sea Challenges and triumphs for Cayman sailor JAMES WHITTAKER jwhittaker@pinnaclemedialtd.com Lashed by hurricane-force winds, racing yacht Liverpool 2018 plummeted down the face of a 45-foot wave. Rain and salt spray lashed the boat’s crew as they struggled to hold their footing on the slippery deck. There have been times during the Round the World Clipper Race when James Macfee has wished he had stayed in Cayman. The accountant is among hundreds of ama- teur sailors matched up with experienced skippers for the unique 11-month race around the world. When the going gets tough, as it did during the latest leg from Qingdao in China to Seattle, Mr. Macfee reflects on the high points of the trip so far. “There are moments like sailing into Cape Town at night with Table Mountain lit up by the glow of the city, or sailing below the Sydney Harbour Bridge with hun- dreds of other boats, that are simply unforgettable. “Then there are those joyful moments on the water where is just the right level of wind, the spinnaker is up, the boat is well balanced and you are absolutely flying.” The fleet of 70-foot ocean racing boats left Liverpool, England, last August and has stopped in Uruguay, South Africa, Australia, the Whit- sunday Islands, China and now Seattle, USA. The next stop is Panama, where they will pass through the Panama Canal en route to New York, before re- turning to Liverpool, via Northern Ireland. Speaking to the Cayman Compass during a brief land break in Seattle, Mr. Macfee said the race had been an in- credible experience so far. The 31-year-old, whose pri- mary sailing experience has been racing Laser Pico din- ghies in the North Sound, had expected to be one of the least experienced sailors on board. “Other than the first mate and the skipper, I am the most experienced sailor, which completely surprised me. More than half the crew are complete novices, but they all have a good attitude and a willingness to learn, which is crucial.” Over the course of the race, he has taken on the role of watch leader, in charge of one shift. He said there had been some hair-raising moments, including when a wave nearly washed him and a crewmate off the bow. But the greatest chal- lenges have been mental. “When you are freezing cold and wet and you have to get out of your sleeping bag in the dark, put on your wet clothes and get back on deck, it can be quite challenging,” he said. “Even more so when you have to try and encourage others to do the same. “You have no respite from that. There’s no weekend, there’s no calling in sick for the day and staying in bed.” He said the stress of keeping everyone safe in a crew of mixed abilities also took its toll at times. But those moments when everything clicks have made the hardship worthwhile. “It has been absolutely in- credible,” he said. “At times it has been tough and draining, but I have just loved being out on the water.” James Macfee braves the elements on board Liverpool 2018. Racing yacht Liverpool 2018 sails past the Sydney Opera House.The islands’ most-trusted news source 3 CAYMAN COMPASS • FRIDAY MAY 4, 2018 The islands’ most-trusted news source 4 Opinion&Letters The Cayman Compass welcomes comments, opinions and viewpoints from readers. Letters to the editor can be emailed to editor@pinnaclemedialtd.com, submitted via www.caymancompass.com, sent by post or hand-delivered to the Compass office. FRIDAY MAY 4, 2018 • CAYMAN COMPASS An obligation to protect the people of the Cayman Islands W. MCKEEVA BUSH I of course support unreservedly the Pre- mier’s position. Over the past three de- cades in which I have been involved in government, the Cayman Islands has introduced world-leading standards of transparency with regard to money laun- dering and criminal in- vestigation, which exceed those standards in effect in the United States and the European Union. The Cayman Islands has for decades maintained registers of beneficial own- ership available to law en- forcement and tax author- ities, and now has this information available on a central register which is not available to the public. This is entirely consistent with the Cayman Islands Constitution and the Bill of Rights which guarantees every person’s private af- fairs shall be maintained in confidence, save on the enquiry of an agent of the government or a public body established by law. These new proposals, I note with astonishment, do not extend to Jersey, Guernsey and the Isle of Man, but target, specifi- cally, the legitimate finan- cial services industry of the Cayman Islands. I assume that the members of Parlia- ment in the United Kingdom were not aware that, unlike the United Kingdom, the Cayman Islands has sys- tems already in place which require the maintaining, by the corporate and other pro- fessional persons, of sub- stantial information on persons who are directors, officers, shareholders and/ or controllers of corporate and investment vehicles. This information is avail- able when there is a justi- fiable need by law enforce- ment agencies. In the event that the matter cannot be sorted out through negotiation, the Premier, Mr. Alden McLaughlin, and the Cab- inet have my full support to determine the legitimacy of the proposals through the legal system, as the same appear to be a clear violation of the Cayman Islands Constitution, an individual’s legitimate right to privacy. The Cayman Islands government is under an ob- ligation to protect its people and, in the light of this sug- gested and unwarranted intrusion, to consider all its options which responses I will fully support and urge all Caymanians to sup- port the Premier. Hon. McKeeva Bush, OBE, JP, MLA, is the elected member for West Bay West and Speaker of the House.McKeeva Bush When politics trumps respect PAUL BYLES International Financial Centers such as the Cayman Islands have for years fought to maintain their financial services industries in the face of widespread misper- ception of their regulatory frameworks and their role in global finance. Sometimes this pres- sure from OECD-based gov- ernments is based more on commercial politics (the competition between on- shore and offshore centres) than on the rationale put forward by those OECD- based governments (which usually cites the need to put global regulatory standards in place to fight money laundering and another ne- farious crimes). But despite the reality of where this pressure is coming from, the Cayman Islands has always taken the view that it must cooperate and has invested many mil- lions of dollars and human resources into enhancing its regulatory framework and cross-border coopera- tion mechanisms to meet the proposed new stan- dards (even in cases where it is clear the foundation for the pressure to do so may seem dubious). The jurisdiction has done this partly because of the reality of the political dy- namics at hand. Cayman is, after all, a British Over- seas Territory, and the U.K. maintains a level of re- serve powers over all of its territories. The U.K. has always re- spected the right of the Cayman Islands to govern itself in most areas, and for anyone looking in from the outside this would seem evi- dent. But the recent approval by the U.K. Parliament to po- tentially force its territories to introduce public benefi- cial ownership registries by 2020 shows that colonial politics (of the 1950s variety) are still here. It demon- strates that the U.K., which in recent years has sung a tune which says they will protect the interests of its territories in reasonable cir- cumstances, ultimately will use whatever means nec- essary to achieve its own selfish agendas (as and when these opportunities arise). The threat that the U.K. may force the change if the Cayman Islands does not implement it by 2020 is a form of bullying, but it feels more so when one con- siders that the Crown De- pendencies (which faced a similar fate) were able to successfully argue to be ex- cluded from this bullying. The basic idea behind the need to have beneficial own- ership information is to en- able governments and their authorities to know who is behind a company to better facilitate investigations into tax and regulatory breaches. No one disagrees with that. The Cayman Islands has demonstrated consistently that it will go very far in co- operating with overseas au- thorities to help in the fight against tax evasion, as well as to fight money laundering and terrorist financing. The Cayman Islands has signed dozens of tax in- formation exchange agree- ments and has committed to the OECD’s Common Reporting Standard and FATCA. The jurisdiction also has a long history of on- going cooperation and in- formation exchange between regulatory and competent authorities in Cayman and in more than 100 coun- tries. Any objective review of its anti-money laundering framework demonstrates that the country’s legisla- tion and implementation is on par (and in some cases exceeds) that of the frame- work of many so-styled ad- vanced financial services centers. These actions are proof that the Cayman Is- lands has always taken its obligations seriously. But if the refusal to take Cayman’s actual commit- ments and regulatory frame- work into consideration is poor, the blatant disregard for the constitutional rela- tionship between the U.K. and its territories is surely the most shameful part of this debacle. Not only was this done flippantly and in the vein of old school colonialism, but the actions by Parlia- ment have shown no re- gard for the economic well- being of the territories by requiring the territories to implement public registries ahead of this being a global standard (i.e., when many other countries are not re- quired to do so). The U.K.’s Foreign Of- fice minister is reported as saying that “We [the U.K.] do not want to legislate di- rectly for [the British over- seas territories], nor do we wish to risk damaging our long-standing constitutional arrangements which respect their autonomy. However, we have listened to the strength of feeling in his House on this issue and accept that it is without a doubt the ma- jority view of this House that the overseas territo- ries should have public reg- isters ahead of it becoming the international standard as set by the financial ac- tions task force.” Based on that statement, the fact that the U.K. would knowingly create an unlevel playing field for its territo- ries based on misperception and politics is a terrible in- dictment of the ‘trust’ part of the relationship between the U.K. and those territo- ries. If this action is not re- versed at the final amend- ments stage before “Royal Assent,” then “trust” (if pre- sumably it did exist) would be all but lost. Paul Byles is president of the Cayman Islands Chamber of Commerce. PRINTED AND PUBLISHED BY: Caymanian Compass Limited (a subsidiary of Pinnacle Media Ltd) Compass Centre Shedden Road, George Town SEND US YOUR VIEWS OR NEWS: P.O. Box 1365 Grand Cayman, KY1-1108 Cayman Islands Telephone: (345) 815-0095 Email: newsdesk@pinnaclemedialtd.com ADVERTISE WITH US: Telephone: (345) 949-5111 Email: sales@pinnaclemedialtd.com Website: www.caymancompass.com PUBLISHERS DAVID R. LEGGE AND VICKI L. LEGGE EDITOR-IN-CHIEF DAVID R. LEGGE EXECUTIVE EDITOR PATRICK BRENDEL A MEMBER OF THE INTER-AMERICAN PRESS ASSOCIATION “Give light and the people will find their own way” In the event that the matter cannot be sorted out through negotiation, the Premier, Mr. Alden McLaughlin, and the Cabinet have my full support to determine the legitimacy of the proposals through the legal system as the same appear to be a clear violation of the Cayman Islands Constitution, an individual’s legitimate right to privacy. Paul BylesThe islands’ most-trusted news source 5 CAYMAN COMPASS • FRIDAY MAY 4, 2018 CAMANA BAY WELCOMES RYDE Experience the next generation of indoor cycling at Ryde Cayman with a full schedule of performance and rhythm classes offering an exhilarating, high-intensity fitness experience. Located on the Crescent Open daily; class times vary, visit rydecayman.com for full schedule. +1.345.746.7933 rydecayman.com CAMANABAY.COM where life blossomsThe islands’ most-trusted news source 6 FRIDAY MAY 4, 2018 • CAYMAN COMPASS London Office Director Eric Bush warned later in the same month that another attempt to insert the amendment into the bill was coming – perhaps as early as February. “It can reasonably be ex- pected that [MPs] will file a similar amendment,” Mr. Bush said on Jan. 30. The expected amendment requiring the open public register did not come until Thursday, April 26 – the last possible day amendments could be filed onto the Sanc- tions and Anti-Money Laun- dering Bill, due to have its third and final reading be- fore the House of Com- mons on Tuesday. Two amendments were filed April 26. The first, put for- ward by a coalition of Labour politicians paired with a rebel group of 19 conservatives, as well as members of the Scot- tish National Party, sought to single out the British Overseas Territories for the public com- pany register requirement. The second amendment, filed by a Labour-led group, sought to include both British territories and Crown Depen- dencies (Jersey, Guernsey, Isle of Man) in the requirement. According to sources fa- miliar with the issue, Cayman was not overly concerned about the Labour-led amend- ment, because it knew the Conservative Party – the largest representative group in the U.K. coalition government – would not support it. However, the amendment singling out the British Over- seas Territories was worri- some, according to sources with knowledge of the matter. It was co-filed by conserva- tive MP Andrew Mitchell and supported by such notables as former U.K. Attorney Gen- eral Dominic Grieve, as well as the U.K.’s “father of the House of Commons,” 77-year-old Ken- neth Clarke, MP. Moreover, Prime Minister Theresa May’s coalition gov- ernment was apparently un- aware the Conservative-La- bour-SNP version of the amendment was coming, ac- cording to sources familiar with the matter. “The political mishandling of this was legendary,” said one U.K. source, speaking on condition of anonymity. Rescue attempt On Monday of this week, the Theresa May-led coali- tion government filed what was referred to as a “con- ciliatory amendment” to the Sanctions and Anti-Money Laundering Bill. This proposal, which looked to stave off both amendments to the bill filed April 26, would have included the overseas territories and the Crown Dependencies in the requirement for the public company ownership register. However, that requirement would only take effect “as and when public registers became a global standard.” It was believed, as of about midnight Monday U.K.-time, that this was the amendment version the House of Com- mons would consider Tuesday during the anti-money laun- dering bill’s third reading. However, between mid- night Monday and about noon Tuesday, U.K. time, some- thing had changed. Speaker of the House of Commons John Bercow ruled Tuesday that the coalition government’s amendment had been filed late and would not be considered. It was cor- rect that the amendment was filed out of time, the deadline having been close of business on April 26, but it was within Mr. Speaker Bercow’s power to allow it nonetheless. He did not. It was at this stage that Cayman Islands represen- tatives realized the fight had been lost. U.K. and Cayman sources both speculated as to the rea- sons for why the concilia- tory version of the amend- ment was not accepted for debate. Many noted that a crucial Brexit bill concerning the operations of the single market once the U.K. leaves the European Union next year was up for debate in the Commons as well. “[The public register amendment] was being used as a bargaining chip,” one source said. However, the issues sur- rounding Brexit and its poten- tial impacts are so numerous, and the coalition that sup- ported the amendment to the anti-money laundering bill so diverse, others doubted any one issue could be pinpointed as the reason the amendment singling out the overseas ter- ritories was approved. Adding insult to injury Later Tuesday in the House of Commons, Sir Alan Duncan, the minister who represents the territories in the Commons, confirmed that the amend- ment to single out the over- seas territories for the adop- tion of the public company ownership register would not be opposed by the U.K. coali- tion government. He asked that the other amendment filed April 26, which would have included both the Crown Dependencies and the overseas territories, be withdrawn. From Cayman supporters’ perspectives, it was the worst possible outcome. “Her Majesty’s Govern- ment is acutely conscious of the sensitivities about this in the overseas territories and the response it may provoke,” Sir Alan said. “I therefore today [Tuesday] give the overseas ter- ritories the fullest possible as- surance that we will work very closely with them in shaping and implementing the order- in-council which this act of parliament might require.” Sir Alan further promised all the “legal and logistical support” the territories might ask of the U.K. It was Sir Alan who stated on the same day that it was the “majority view of the House” that the British Over- seas Territories should be sin- gled out in the amendment to the Sanctions and Anti-Money Laundering Bill. Sources with knowledge of the matter told the Cayman Compass that the minister for the Foreign and Common- wealth Office would not have made such a pronouncement in the House without the sup- port of U.K. Secretary of State Boris Johnson and the coali- tion government. Next steps In the 24 hours after the vote was taken, U.K. media were widely speculating about whether Cayman and the rest of the British Territories in the Caribbean and the Atlantic, including Bermuda and the British Virgin Islands would seek independence as a re- sult of the vote. Cayman London office di- rector Eric Bush told the U.K. public radio: “We’re exploring all options. The decisions and actions taken [Tuesday] were taken in haste, were taken with misinformation, rhetoric and Hollywood jargon. The Cayman Islands government is not going to do that. “The actions taken [Tuesday] are certainly a blow to the relationship. It shows a lack of trust, it shows a dis- respect and disregard [for] the constitution.” Premier Alden McLaughlin told Cayman Islands public broadcaster Radio Cayman that the local government is seeking legal advice with an eye to challenging the threat- ened order-in-council. The premier’s pronounce- ments were supported by Cayman Speaker of the House McKeeva Bush: “In the event that the matter cannot be sorted out through negotia- tion, the premier … and the Cabinet have my full sup- port to determine the legiti- macy of the proposals through the legal system as [they] ap- pear to be a clear violation of the Cayman Islands Constitu- tion, an individual’s legitimate right to privacy.” Cayman’s Deputy Opposi- tion Leader Alva Suckoo also commented on the U.K. legis- lative action, saying, “It is clear that despite recent pronounce- ments of a renewed partner- ship with the overseas terri- tories by the U.K., we are still wrapped in the shroud of co- lonialism and it is up to us, the elected leaders, to protect these islands from the self- serving and disingenuous ac- tions of those who claim to be our partners.” How it happened: The UK House of Commons vote CONTINUED FROM PAGE 1 Sir Alan DuncanKenneth ClarkeJohn Bercow Cambridge Analytica shuts down amid Facebook data scandal Cambridge Analytica, a po- litical consultancy that worked for the Trump campaign and had come under attack for its use of personal Facebook data in other elections, announced on Wednesday it would cease operations and declare bank- ruptcy in the United States and United Kingdom. The firm said it had lost clients because of revelations in March that it had improp- erly obtained the personal in- formation of millions of Face- book users. “It is no longer viable to continue operating the business,” Cambridge An- alytica said in a statement. Cambridge Analytica de- fended its use of Facebook, saying it was “vilified for ac- tivities that are not only legal, but also widely accepted as a standard component of online advertising in both the polit- ical and commercial arenas.” The decision by the firm comes as it continues to face potential investigations and sanctions from regulators around the world for charges. The controversial tactics of Cambridge Analytica – whose former vice president, Repub- lican strategist Steve Bannon, later worked for Trump’s campaign and in the White House – first came to light in March in news reports that it had amassed data from tens of millions of Ameri- cans through a Facebook quiz app. Facebook suspended the firm at the time. In a statement Wednesday, Facebook said, “This doesn’t change our commitment and determination to understand exactly what happened and make sure it doesn’t happen again. We are continuing with our investigation in co- operation with the relevant authorities.” Bannon, who later left the company, did not respond to requests for comment. Critics of Cambridge Ana- lytica and the largely unregu- lated use of personal data for political campaigns said the closing of the company will have little effect on the kinds of abuses that the company is alleged to have committed. “The closing of Cambridge Analytica doesn’t stop the problem that voters and con- sumers face in terms of a growing loss of privacy and a gross misuse of their data,” said Jeff Chester of the Center for Digital Democracy. “ Cam- bridge Analytica’s practices, although it crossed ethical boundaries, is really emblem- atic of how data driven dig- ital marketing occurs world- wide. Americans are currently helpless to stop the massive flows of their personal infor- mation now regularly fed to Google, Facebook, ISPs and many others.” Cambridge Analytica was born of as an American off- shoot of London-based SCL Group, whose affiliates had worked in campaigns around the world, including Kenya, Ni- geria and India. Initial funding for Cambridge Analytica came from Republican financier Robert Mercer, who invested at least $10 million in the company as it sought to help exclusively GOP candidates across a range of U.S. congres- sional and state legislative elections beginning in 2014. His daughter Rebekah Mercer was the company’s first pres- ident. Neither Mercer re- sponded to requests for com- ment on Wednesday. In 2014, Cambridge Ana- lytica gained access to the Facebook data of tens of mil- lions of people using a tech- nique widely used during that era to collect informa- tion on Facebook users. Among its leading clients then was a super PAC controlled by Re- publican John Bolton, now Trump’s national security ad- viser. Designed by an outside researcher named Alexander Kogan, the tool, called ThisIsY- ourDigitalLife, collected infor- mation not only on Facebook users who approved it but also their friends. In total, Face- book has said that Cambridge Analytica had access to data on 87 million people, including 71 million Americans, in its ef- forts to create detailed profiles about voters’ backgrounds and behaviors, as well as what types of political messages might appeal to them based on their personalities. Cambridge Analytica used this and other data – collected from data brokers and other sources – to fuel its Project Ripon, an effort to win Repub- lican races that was named for the birthplace of the party, Ripon, Wisconsin. © 2018, The Washington PostThe islands’ most-trusted news source 7 CAYMAN COMPASS • FRIDAY MAY 4, 2018 william.forsythe@caymancaptive.ky Applications should be submitted by pdf only, no later than 18th of May 2018 to: The above Foundation is currently offering a scholarship for a maximum of four years to a Caymanian High School graduate. Preference will be given to those candidates who intend to pursue a career in the nancial services industry upon graduation from university. However applications from all disciplines will be accepted. Candidates should be prepared to begin their university degree programme in the 2018 school year. The choice of university must be approved by the Foundation. Applicants should possess a minimum of ve good passes at CXC or ICGSE or equivalent. Evidence of educational achievements and, if possible university acceptance should accompany the application. In addition, a brief biography and a narrative as to the reason for the choice of University/Course should be included. Additional details and an application form can be obtained at www.caymancaptive.ky “A scholarship from IMAC has been a tremendous opportunity of which I will always be grateful for. It has enabled me to pursue a degree at a top university to compete against some of the most intelligent students in the UK. Similarly, becoming a doctor means so much to me and this journey would have been a nancial burden without the generosity of the IMAC scholarship. Through IMAC I have embarked on a path where I can offer so much more to the people of the Cayman Islands than I would if I had not had this opportunity. Name: Whitney General Degree: Medicine (MB ChB) and BSc in Health Sciences at the University of Bristol S C H O L A R S H I P Whitney GENERAL INSURANCE MANAGERS ASSOCIATION OF CAYMAN EDUCATIONAL SCHOLARSHIP FOUNDATION Whitney GENERAL Whitney GENERAL Whitney INSURANCE MANAGERS ASSOCIATION OF CAYMAN EDUCATIONAL SCHOLARSHIP FOUNDATION CURRENT RECIPIENTCURRENT RECIPIENT International press has little sympathy for ‘dirty money’ ‘tax havens’ MICHAEL KLEIN mklein@pinnaclemedialtd.com The international press dedicated a huge amount of column inches this week to the decision by the U.K. par- liament to force its overseas territories to make public the owners of companies registered in their jurisdic- tion, if necessary through an order in council. Most news organizations in the U.K. celebrated the move as a victory for trans- parency campaigners and a major push against off- shore secrecy. The constitutional con- cerns expressed by the ma- jority of overseas territo- ries’ leaders about British MPs legislating the affairs of largely autonomous territo- ries thousands of miles away received in contrast very little attention. Cracking open ‘offshore secrecy’ British newspaper The Guardian, which featured offshore transparency as part of its news agenda perhaps more than any other news organization in the U.K., ac- knowledged that there may be legitimate reasons to use offshore jurisdictions. “But kleptocracy – egre- gious and globalized grand corruption – is enabled by anonymous compa- nies, which strip the finger- prints off stolen money and, having done so, hide it under the cover of supposedly re- spectable corporations. Once all traces of the money’s or- igin have been removed, the thieves can spend it on New York property, European pass- ports or western politicians, and they do it in vast quan- tities,” The Guardian wrote in an article about the move- ment of NGOs that “crack open offshore secrecy.” It quoted a 2013 estimate by advocacy group Global Fi- nancial Integrity that puts il- licit financial flows at well over $1.1 trillion, adding that the total was “growing fast.” “Many of these companies came from the British Virgin Islands, Gibraltar, Anguilla and the other pink dots left on the map of the world, which is why Tuesday’s vote in parlia- ment was so celebrated,” the article said. The Guardian also con- nected Tuesday’s decision di- rectly to the Panama and Paradise Papers. It quoted Conservative MP Andrew Mitchell who brought the public registry amendment telling MPs that the justifica- tion for disclosure was made “elegantly but passively” by the leaking of the Panama and Par- adise Papers, which revealed the true owners of thousands of offshore companies. “It is only by openness and scrutiny, by allowing charities, NGOs and the media to join up the dots, that we can expose this dirty money and those people standing behind it. Closed registers do not begin to allow us to do it,” he said in the House of Commons. Gerard Ryle, the director of the International Consor- tium of Investigative Jour- nalists, which coordinated the Panama and Paradise Papers coverage around the world, said he was “incred- ibly proud” of the legislative action by the U.K. parliament which showed “how our work makes a difference.” Ultimately, the move means that owners of com- panies in the BVI and the Cayman Islands will be re- vealed. “As you may re- member from our reporting at the time, the BVI was one of the most frequently used tax havens by Mossack Fon- seca, the firm at the heart of the Panama Papers,” Mr. Ryle said on the ICIJ website. Attacking the defenders British tabloid The Daily Mirror meanwhile attacked one of the few politicians who spoke up on behalf of the over- seas territories. The left-wing tabloid fo- cused on Conservative MP Geoffrey Cox who “defended tax havens in Parliament after a GBP40,000 Cayman Islands payday” stating the “million- aire MP” had failed to mention in Tuesday’s House of Com- mons debate that he once rep- resented former Cayman Is- lands Premier “McKeeva Bush in a corruption trial over his use of government credit cards in casinos.” Mr. Bush was found not guilty in the trial. The Mirror said Mr. Cox later admitted “he should have come clean” to MPs about his interest before attacking the amendment. Bloomberg Business news orga- nizations were equally in favor of the move to force public registers. News agency Bloomberg welcomed the U.K. move in a commentary stating it would “let the sunshine in on tax havens” but cautioned that the new transparency would have to be backed by enforcement. Corporate anonymity, wrote columnist Lionel Lau- rent, had made the British Overseas Territories a magnet for overseas money. Open registers “should sow seeds of panic in the offshore fi- nancial ecosystem, which has played a central role in recent money laundering and tax evasion scandals.” However, he pointed to problems with the U.K.’s public registry which em- ploys only six out of the 1,000 staff at Companies House to detect breaches of its rules and inaccurate informa- tion. Still today, 13 percent of firms at Companies House have failed to name their controlling shareholders. Financial Times The Financial Times an- alyzed why British Over- seas Territories “fear” that the transparency push could “undermine their positions as leading offshore finan- cial centers.” Simon Airey, partner at law firm Paul Hastings, said in the FT that high levels of privacy had been a significant draw for off- shore centers. “We will see … money on the move, some will be black, some will be grey, and some will be white,” said Mr. Airey. “There will be a shake-up but I wouldn’t be too worried about the over- seas territories. It won’t be a massive exodus.” The paper also addressed the potential for legal ac- tion by Cayman and Ber- muda against an order in council. However, Tory MP Mr. Mitchell said this was unlikely to be successful. “Parliament has spoken,” he said. “They have to do this by 2020. It will be a waste of their money [to chal- lenge this in the courts], but they can try.”8 LOCAL NEWS FRIDAY MAY 4, 2018 • CAYMAN COMPASS Condolences can be registered at: www.churchillsfuneralhome.comCondolences can be registered at: ww .churchillsfuneralhome.com Churchill’s Funeral Home We have been asked to announce the passing of Mr. John Alfredo Miller III, who passed away on Sunday April 29, 2018. Details of a Thanksgiving Service will be announced at a later date. Churchill’s Funeral Home Condolences can be registered at: www.churchillsfuneralhome.com We have been asked to announce the passing of Mr. Eugene Alexander Garland, who passed away on Friday April 13, 2018. A Thanksgiving Service will be held on Saturday May 5, 2018 at 2:00pm at Church of God Prophecy, 325 Eastern Avenue, George Town. Viewing will be from 1:00-1:45pm. Mr. Garland will be repatriated to Jamaica. e have been asked to announce the passing of Churchill’s Funeral Home Condolences can be registered at: www.churchillsfuneralhome.com We have been asked to announce the passing of Mr. Maxwell Lamar Hyman, who passed away on Friday April 27, 2018. Details of a Thanksgiving Service will be announced at a later date. In Loving Memory of Donley Wood February 14, 1945 - May 3, 2005 Those we love don’t go away, they walk beside us everyday. Unseen, unheard but always near, So loved, so missed, so very dear. From your loving wife Kinsey, children & grandchildren. The family of the Late Kirkland Nixon regrets to announce his passing on Monday, 30 April, 2018. Condolences can be registered at www.boddenfuneralservices.com & Bodden Funeral Service Facebook page Funeral arrangements will be announced at a later date. Students getting chance to make music MARK MUCKENFUSS mmuckenfuss@pinnaclemedialtd.com Who knew there were hot cross elephants? It came as a surprise to Michael Grizzel, Nicole Scott and Theo Webb as they worked their way through a traditional nursery rhyme song as part of their clarinet lesson. Here they were trying to hit the notes without pro- ducing a squeak, which was challenge enough. But now they were suddenly dis- tracted by the idea of a pachy- derm as a bakery product. “What’s a hot cross ele- phant?” asked Michael, 10. Music teacher Emily Farren, 28, laughed. She told him it was just a device to help the students learn a different time sequence in their playing, providing three beats instead of the single beat needed for “buns.” The three George Town Primary students, who quickly saw the logic of the elephants in the song, are participating in a new pro- gram that is bringing free music lessons to students in the government schools. Janine Stabler, founder of Musicians Limited, which has been providing music lessons in Cayman’s private schools for the past 17 years, said she saw a need for sim- ilar offerings in the govern- ment schools. Last year, the Cayman Arts Trust was es- tablished to meet that need – it also helps a few private school students with finan- cial need – and in January it started up programs at three government schools. Besides George Town Primary, les- sons are also being offered at East End Primary and Clifton Hunter High School. Ms. Stabler said plans are to expand the program to all government schools, but more funding is needed. A fundraiser for the organiza- tion is planned for November. “I have government schools knocking on my door,” she said. “We’re looking in the corporate world to get someone to come on board to sponsor the program. Hope- fully, we’ll be able to expand and provide more teachers.” Currently, the operation has a staff of eight people providing lessons in such areas as piano, guitar, wood- winds and voice. Musicians Limited also has a perfor- mance component for those interested in dance and mu- sical theater. It also provides some scholarships to stu- dents studying overseas. Ms. Farren, who teaches flute, clarinet and saxo- phone at George Town, said she thinks the government school students may have a slightly different outlook than their private school counterparts. Not only do they receive lessons once a week, but they are loaned a dedicated instrument that they can take home and practice on. Some students said they leave their instru- ment at school out of fear they may forget it at home or, worse, lose it somehow. “I feel they appreciate it more,” Ms. Farren said of her George Town students. “The [private] schools, they’re priv- ileged enough to afford it.” She said bringing music into the schools is important. “I think just the expo- sure to music, it really im- pacts their learning in a good way,” she said. Jeton Bennett, 9, said he chose to learn the saxophone because of its sound. “I like heavy objects be- cause I know they’re going to make deep sounds,” he said. But it’s not easy. “For me, the hardest part is making sure the reed is in the right place,” Jeton said, noting that if he doesn’t get it right, he’ll end up producing an unpleasant squeal. That may chase some people away, but Ms. Sta- bler does not think it will dissuade more students from wanting to partici- pate. She hopes to accommo- date them all, especially now that the program has been approved for the govern- ment schools. The process to make that happen was a long one, she said. “Now that we’re in,” she said, “we need to expand the program quickly.” Currently, the operation has a staff of eight people providing lessons in such areas as piano, guitar, woodwinds and voice. Emily Farren, right, leads clarinet students, from left, Theo Webb, Michael Grizzel and Nicole Scott through the song ‘Hot Cross Buns.’ - PHOTOS: MARK MUCKENFUSS Alexis Espeut, left, and Jeton Bennett practice the saxophone during a music lesson at George Town Primary.9 LOCAL NEWS CAYMAN COMPASS • FRIDAY MAY 4, 2018 Visiting Gynecologist will be available for consultation at Novo Clinic, Britcay House 236 Eastern Avenue from 8-21 May, 2018 For appointments please call +1 (345) 746-6082 clinic@novocayman.com Action group granted legal aid to fight for beach access JAMES WHITTAKER jwhittaker@pinnaclemedialtd.com Government could face legal action over its refusal to officially register some 200 beach access paths. A judge has ruled that the Concerned Citizens Group should be granted legal aid to pursue their appeal against the decision of the Registrar of Lands. Justice Alastair Malcolm said the appeal had a rea- sonable possibility of success and involved the consider- ation of a substantial ques- tion of law and was therefore a candidate for financial sup- port. Initially, that support is limited to funding an as- sessment of the “merits of the case” by an attorney. As far back as 2003, the group filed 500 affidavits from members of the public in an effort to officially reg- ister the paths. Members of the group say they have been in constant dialog with successive gov- ernments ever since. But it was not until last year, when a series of beach access dis- putes put the issue back in the spotlight, that they re- ceived a response. In a letter to the group, Registrar of Lands So- phia Williams said the law did not enable her to reg- ister the accesses unless ordered to do by a court, following a dispute. She acknowledged that such access paths did acquire legal status under the Pre- scription Law after 20 years of use, but indicated that this could not be officially re- corded on the lands register without a court order con- firming the “existence, nature and extent” of the easement. Three members of the Concerned Citizens Group, Alice Mae Coe, Ezmie Smith and Annie Multon, sought to challenge that decision. But they were denied legal aid for an appeal. They believe that the law permits government to register the paths on the basis of the evidence they have provided. Now, a judge has ruled that they should be granted legal aid to push the case. Justice Malcolm said a 2003 memo from former crown counsel Stephen Hall Jones, cited by the applicants, suggested the approach they had taken in requesting reg- istration of public rights of way was valid. He said this had persuaded him the ac- tion had a chance of success and should be considered for legal aid. He also ruled that the three women should be assessed for contributions. Stacey Parke, director of Legal Aid, told the Compass, “Once the applicants are as- sessed on their means, the legal aid certificate will be issued for their attorney to provide our office with an opinion on the merits of the case. Depending on the merits of the opinion, further legal aid funding maybe granted for the substantive action.” Ezmie Smith, one of the concerned citizens, said she was pleased with the deci- sion, but felt the cost of the action should come entirely from legal aid. “I have nothing personally to gain in protecting beach access. It is for the public at large,” she said. She ac- knowledged government had begun to make progress on the issue of beach access in recent years, passing new laws and collecting informa- tion on beach access paths around the island. But, she said, govern- ment had always had the power and the information, from the group’s affidavit, to register and protect the 200 beach access paths they had identified. Wanted man arrested A former prison in- mate that police have been searching for since mid- April on suspicion of en- tering the Cayman Islands illegally has been arrested. The Royal Cayman Is- lands Police Service, working in conjunction with Customs officers and the Depart- ment of Immigration, ap- prehended the wanted man, 36-year-old Marlon Crowe, on Thursday morning. He was found at an address on Frank Sound Road, arrested and taken into custody. A second man, age 30 of Bodden Town, was arrested at the same location on suspicion of harboring a fugitive. Both men remained in custody by press time. The police issued a re- quest for public assis- tance in the search for Mr. Crowe on April 16. The suspect, a Jamaican national, was deported from Cayman in October 2017 after serving a sen- tence for conspiracy to im- port 194 pounds of ganja to Cayman. He is believed to have returned to Cayman illegally earlier this year. Ministry of Finance: Apology unnecessary Despite a suggestion by the Office of the Ombudsman, the Ministry of Finance ap- pears to have no intention of issuing an apology to a freedom of information ap- plicant who complained about the ministry’s handling of the request. Ministry officials said the ombudsman’s report was “dis- appointingly mis-informative” and called its news release on the matter “unwarranted.” The complaint arose out of an apparent misunder- standing about the unnamed applicant’s original freedom of information request re- garding stamp duty abate- ments. Only part of the first request was responded to. When that happened, the ap- plicant filed an appeal with the ombudsman on Sept. 7, 2017. On Sept. 13, the finance ministry provided a com- plete response to the appli- cant’s second. In the complaint, the ap- plicant reportedly faulted the ministry for failing to meet with the applicant despite the applicant’s request for a such a meeting. A press release dated April 30, says, “Ministry was of the opinion that the FOI request was sufficiently clear and that there was no need for a meeting with the applicant. Separately, the applicant de- manded to meet with the ministry but refused to pro- vide a reason for the meeting when asked by the ministry on multiple occasions.” Officials stood on their re- cord, saying of the 83 FOI re- quests received by the de- partment in the past five years, none but this one had resulted in a complaint. “The ministry reaffirms its position that its responses were wholly appropriate,” the release says, adding “The Ministry embraces the deputy governor’s goal for achieving a world-class civil service and affirms that, at all times, its staff are respectful, professional, patient, civil and cooperative when re- sponding to FOI requests and interacting with the general public and colleagues.” The Concerned Citizens Group has been calling for beach access to 200 sites since 2003. – PHOTO: TANEOS RAMSAY TWO ARRESTED FOR SAVANNAH BURGLARY A 27-year-old woman, of Bodden Town, and a 30-year- old man, of George Town, were arrested on Wednesday on suspicion of burglary. The arrests were made in relation to a break-in at a residence in Savannah on April 25, during which a quantity of jewelry and personal items were taken. Police said the woman has been released on bail and the man remained in custody Thursday as inves- tigations continue. Marlon Crowe was apprehended by police on Thursday.Next >