Industry relieved by Cayman’s limited Panama links
Jude Scott, CEO Cayman Finance
(CNS Business): Although the Cayman Islands appears a number of times in the Panama Papers, which have now been made public, given the amount of data leaked, the jurisdiction has a relatively limited and benign part in the story. As government officials and financial service sector representatives do their level best this week to promote Cayman as a cooperative, transparent jurisdiction that can help in the fight against global financial crime, the minor connections have brought some relief.
Jude Scott, CEO of Cayman Finance, said the release of the papers revealed that the Cayman connection is minor and demonstrates the legitimate business transactions this jurisdiction is involved in.
“Of the 214,000 offshore companies set up by the Panamanian law firm Mossack Fonseca, only 104 had a link to the Cayman Islands, these being of the typical range of business expected of a global financial hub such as Cayman,” he said. “Cayman Finance and the Cayman Islands have no tolerance for those who choose to violate our laws. Unfortunately, no jurisdiction in the world is free from the threat of criminal financial activity. Top jurisdictions ensure appropriate law enforcement authorities are empowered and informed fully to prevent crimes, investigate and apprehend criminals. On these efforts the Cayman Islands has been a leader.”
Scott added that the local financial sector had been recognised as a strong international partner in combatting corruption, money-laundering and tax evasion.
“We meet or exceed all globally-accepted standards for transparency and cross border cooperation with law enforcement. The Cayman Islands is a transparent jurisdiction,” he said, as he pressed home the message that Cayman is fighting hard to deliver this week.
Scott said that Cayman’s financial services industry’s collaborative relationship with government was also supporting enhancements to the legal infrastructure to promote even greater transparency with law enforcement.
“These enhancements include a new agreement to provide UK authorities access to beneficial ownership information with the utmost urgency, but in a way that is also appropriate for our jurisdiction,” he said. “These further include a newly announced prohibition on the use of bearer shares, repeal of Cayman’s Confidential Relationships (Preservation) Law and new data protection legislation that will be on par with what is in place in the European Union.”
But Scott called on all the G20 countries and International Financial Centres to work together to combat financial crime and corruption.
“We will continue working with those who pursue practical solutions that also recognise the critical role International Financial Centres like the Cayman Islands play in the global economy,” he added.
The Panama Papers leak, which was published on line in its entirety Monday, has revealed the hidden assets of hundreds of politicians, officials, current and former national leaders, celebrities and sports stars, as well as convicted criminals and others under investigation. It has also focused the world’s attention once again on tax havens and the less transparent part of global finance.
Category: Finance, Financial Services
A bit of odd congratulations by Jude, given that the Panamanian firm had very little connection to the Cayman Islands.
If XXXXXXX had a similar leak of holding companies formed in Cayman, we would have the same taint.