Beneficial Ownership Transparency (Access Restriction) Regulations, 2024 (SL 42 of 2024)

Summary

This is a statutory regulation made under the Beneficial Ownership Transparency Act, 2023, establishing a mechanism by which individuals can apply to CIMA (acting as competent authority) to have their beneficial ownership information withheld from public disclosure on the beneficial ownership search platform. It applies to individuals who are registrable beneficial owners, proposed beneficial owners, or senior managing officials of a Cayman Islands legal person, where disclosure of their association with that legal person would place them or a household member at serious risk of kidnapping, extortion, violence, intimidation or similar harm.

• Application process: Applications are made using the form set out in Schedule 1.
• Evidence and fee: Applicants must provide the evidence and pay the fee specified in Schedule 2.
• Determination: CIMA determines applications and may seek additional information or refer risk assessments to law enforcement or other bodies.
• Duration and revocation: Approvals last three years unless withdrawn by the individual or revoked by CIMA, with revocation following a notice-and-representations process.

While the direct subject of the regulation is the individual applicant rather than a licensed financial services entity, the regime affects any Cayman Islands legal person whose beneficial owners or senior managing officials may seek to restrict public access to their information on the search platform. Corporate service providers and legal persons should be aware of this process when handling beneficial ownership disclosures.

Key obligations

• An applicant seeking to prohibit disclosure of their information on the search platform must apply to the competent authority using the form in Schedule 1.
• An application must be accompanied by supporting evidence and the application fee specified in Schedule 2 (CI$1,000).
• An applicant must inform the competent authority in writing, without delay, upon becoming aware of any change to the information or evidence provided in connection with the application.
• The competent authority must not disclose the information subject to an application to any member of the public while the application is being considered.
• The competent authority must issue a written notice of its determination decision no later than seven working days after determining an application.
• Where an application is approved, the competent authority must not disclose the relevant information to the public; the approval has effect for three years unless withdrawn by the individual or revoked.
• Where the competent authority intends to revoke an approval, it must notify the affected individual(s) of the intended revocation and the proposed effective date, and the individual may submit written representations within twenty-eight days of the notice.
• The competent authority must consider any representations received before deciding whether to revoke an approval, and must notify the individual(s) in writing of its decision within seven working days of making that decision.
• Where an approval is revoked, the competent authority must provide reasons in writing and make the previously restricted information available for public inspection (in accordance with the Beneficial Ownership Transparency (Legitimate Interest Access) Regulations, 2024) as soon as reasonably practicable.

Applies to

registrable beneficial owners, proposed beneficial owners, senior managing officials, legal persons

Deadlines

• 7 working days after determining an application: Competent authority must issue written notice of its decision on an application to prohibit disclosure.
• three years after the date the approval notice is issued: Duration for which an approved prohibition on disclosure remains effective, unless withdrawn or revoked earlier.
• 28 days beginning on the date specified in the revocation notice: Period within which an individual may submit written representations opposing a proposed revocation of approval.
• 7 working days after making a decision on revocation: Competent authority must send written notice of its revocation decision to the affected individual(s).

Related documents

• This document is made under Beneficial Ownership Transparency Act, 2023 (Act 13 of 2023)