{"kind":"expression","expression":{"expr_id":"2307","doc_id":"2307","label":"Identification Register Act, 2022 (Commencement) Order, 2023","is_as_enacted":"f","commenced_on":null,"superseded_on":null,"valid_from":null,"valid_to":null,"is_current":"t","incorporating":null,"akn_expr_iri":"\/akn\/ky\/bill\/2023\/14\/eng@2022-01-01","akn_envelope":"{\"_canary\": {\"iri\": {\"work\": \"\/akn\/ky\/bill\/2023\/14\", \"expression\": \"\/akn\/ky\/bill\/2023\/14\/eng@2022-01-01\", \"manifestation\": \"\/akn\/ky\/bill\/2023\/14\/eng@2022-01-01.pdf\"}, \"pdf\": {\"md5\": \"b635d92589b25b7659903150e5344786\", \"path\": \"\/Users\/q\/kyleg-data\/working\/BILLS\/2023\/2023-0014\/2023-0014.pdf\", \"pages\": 39, \"filename\": \"2023-0014.pdf\"}, \"errors\": [], \"extraction\": {\"model\": null, \"stats\": {\"word_count\": 12490, \"paragraph_count\": 36, \"text_char_count\": 80500}, \"usage\": null, \"method\": \"pymupdf-text\", \"version\": \"kyleg-akn-1.0\", \"extracted_at\": \"2026-06-22\"}, \"classification\": \"text_layer\", \"validation_flags\": [], \"docai_processor_id\": null}, \"akomaNtoso\": {\"act\": null, \"doc\": null, \"bill\": {\"body\": [{\"eId\": \"sec_n1\", \"num\": null, \"text\": \"BENEFICIAL OWNERSHIP TRANSPARENCY BILL, 2023 A BILL FOR AN ACT TO PROVIDE FOR THE CONSOLIDATION AND ENHANCEMENT OF THE BENEFICIAL OWNERSHIP LEGISLATIVE FRAMEWORK IN THE ISLANDS; AND FOR INCIDENTAL AND CONNECTED PURPOSES Introduced PUBLISHING DETAILS Sponsoring Ministry\/Portfolio: Ministry of Financial Services and Commerce (FSC) Beneficial Ownership Transparency Bill, 2023 Objects and Reasons Introduced Memorandum of OBJECTS AND REASONS This Bill provides for the enhancement and consolidation of the beneficial ownership legislative framework in the Islands. PART 1 - PRELIMINARY Part 1 contains clauses 1 to 5 and provides for the preliminary provisions in the Bill. Clause 1 provides the short title of the legislation and for its commencement. Clause 2 provides the definition of terms used in the legislation. Clause 3 provides for the meaning of \u201clegal person\u201d. For the purposes of the legislation, \u201clegal person\u201d means a company, a limited liability company, a limited liability partnership, a limited partnership, a foundation company, an exempted limited partnership or any other legal person that may be prescribed in regulations. Clause 4 provides for the meaning of \u201cbeneficial owner\u201d. Clause 5 provides that the Minister charged with responsibility for financial services is the competent authority for the purposes of the legislation. The Minister may act alone or through a person designated by the Minister to act for any specific purpose. PART 2 \u2013 IDENTIFICATION OF REGISTRABLE BENEFICIAL OWNERS Part 2 contains clauses 6 to 12 and provides for the identification of registrable beneficial owners. Clause 6 provides for the duty of legal persons to identify its beneficial owners. A legal person to which the legislation applies shall provide the required current and valid particulars of its registrable beneficial owners. Clause 7 sets out the persons who are registrable beneficial owners in relation to a legal person. The persons are \u201can individual\u201d and \u201ca reportable legal entity\u201d that the legal person identifies as a beneficial owner. Clause 8 provides for, among other things, a legal person\u2019s duty to give notice to registrable beneficial owners, reportable legal entities and to any person that the legal person knows is a registrable beneficial owner. Clause 9 provides for the duty of registrable beneficial owners to, among other things, notify the legal person that it is a registrable beneficial owner of the said legal person. Clause 10 provides that the competent authority may exempt an individual or a legal person from, among other things, complying with a notice, sending a notice or carrying out duties under sections 9 and 14. The clause also exempts a company designated under section 80 of the Companies Act (2023 Revision) from the provisions of the legislation. Objects and Reasons Beneficial Ownership Transparency Bill, 2023 Introduced Clause 11 provides for, among other things, the duty of a corporate services provider to review particulars provided under section 6 and to be satisfied that the particulars are accurate before entering them in the register. A corporate services provider is required to provide the required particulars to the competent authority at the prescribed intervals. Clause 12 makes it a requirement that a corporate services provider gives the competent authority written confirmation of a legal person\u2019s category and whether the legal person is, among other things, listed on the Cayman Islands Stock Exchange, licensed under a regulatory law or exempted by the Cabinet by virtue of this legislation. PART 3 \u2013 BENEFICIAL OWNERSHIP REGISTER Part 3 contains clauses 13 to 17 and provides for the establishment of the beneficial ownership register. Clause 13 provides for the duty to establish and maintain a register that contains, among other things, adequate, accurate and current beneficial ownership information in the form of required particulars of registrable beneficial owners. Where an ordinary resident company does not engage a corporate services provider, the ordinary resident company shall establish and maintain its own beneficial ownership register. A corporate services provider is required to deposit beneficial ownership information regularly in such manner and intervals as prescribed. Clause 14 provides for the duty to keep the beneficial ownership register current. A legal person shall give notice to the registrable beneficial owner if a relevant change occurs in respect of a registrable beneficial owner. Where the change is confirmed, the legal person is required to record the details of the change and give instructions to have, among other things, the details of the relevant change entered in the beneficial ownership register.  A relevant change occurs where the registrable beneficial owner ceases to be so or where any other change occurs that renders the required particulars in the beneficial ownership registered incorrect, incomplete or not current. Clause 15 provides for the duty to notify relevant changes. A registrable beneficial owner is required to, among other things, notify the legal person of a relevant change, state the date on which the relevant change occurred and give the legal person any information needed to update the beneficial ownership register. Clause 16 provides for the removal of an entry where an individual or a reportable legal entity is no longer a registrable beneficial owner of a legal person. The clause also provides for the retention of the record relating to an individual or reportable legal entity for five years after the individual or entity ceases to be a registrable beneficial owner. Clause 17 provides that where the name of an individual or reportable legal entity is entered or omitted from a legal person\u2019s beneficial ownership register, or there is delay or default in making an entry in the beneficial ownership register, an aggrieved person may apply to the Grand Court for rectification of the legal person\u2019s beneficial ownership register. The Grand Court may refuse the application or order rectification of the register and payment by the legal person of any damages sustained by the aggrieved person. If the Beneficial Ownership Transparency Bill, 2023 Objects and Reasons Introduced Grand Court makes an order for rectification of the register, it shall direct that notice of the rectification be given to the competent authority. PART 4 \u2013 RESTRICTIONS NOTICES Part 4 contains clauses 18 to 21 and provides for restrictions notices among other matters. Clause 18 provides that where a corporate service provider is of the opinion that a legal person has failed to comply with section 8 or 14 or has made a statement to the corporate services provider that is false or misleading, the corporate services provider shall give notice of this to the legal person. On receipt of the notice, the legal person is required to take such steps as to justify or make the necessary correction failing which the corporate services provider shall issue a restrictions notice. The legal person on whom a restrictions notice is issued may apply to the Grand Court to have it set aside. Clause 19 provides for the issue of restrictions notices by a corporate services provider. It provides, among other things, that a corporate services provider that issues a restrictions notice to a legal person shall withdraw the restrictions notice if the corporate services provider is satisfied that there is a valid reason for the person\u2019s failure to comply, the notice is complied with or the rights of a third party are being unfairly affected by the restrictions notice. Clause 20 sets out the effects of issuing a restrictions notice. The effects include the voiding of any transfer or any agreement to transfer and the inability to exercise any rights in respect of the relevant interest. Clause 21 provides for applications to the Grand Court. The Grand Court may, among other things, give directions for the purposes of protecting the rights of third parties, persons with security interests over the relevant interest, shareholders or other beneficial owners where it is satisfied that a restrictions notice affects those rights unfairly. PART 5 \u2013 ACCESS TO BENEFICIAL OWNERSHIP INFORMATION Part 5 contains clauses 22 and 23 and provides for access to beneficial ownership information. Clause 22, among other things, sets out the requirement for the competent authority to maintain a search platform that enables specified persons to access information on beneficial ownership registers maintained on behalf of legal persons. The clause also provides that the competent authority may provide access to a number of entities including the Royal Cayman Islands Police Service, the Financial Reporting Authority, the Cayman Islands Monetary Authority and the Tax Information Authority. The competent authority is empowered to charge such fees as may be prescribed for access to information on the search platform. Clause 23 prohibits the disclosure of information relating to specified searches under clause 22(2) by the competent authority or its employees, servants or agents except where the disclosure is to authorized persons or for statistical or reporting purposes. Objects and Reasons Beneficial Ownership Transparency Bill, 2023 Introduced PART 6 \u2013 POWERS AND ENFORCEMENT Part 6 contains clauses 24 \u2013 27 and provides for the powers of the competent authority and the Registrar and for enforcement under the legislation. Clause 24 empowers the competent authority or the Registrar to request any information from a legal person or corporate services provider for the purposes of, among other things, carrying out functions under the legislation, verifying the accuracy of information, assisting with the detection of crime or furthering the interests of national security. A legal person or corporate services provider is required to comply with the notice within such period of time as may be specified in the request. Clause 25 imposes a duty on the corporate services provider to forward any correspondence received to the respective legal person or individual to whom the correspondence is addressed without delay. Clause 26 sets out the administrative penalty framework. The provision, among other things, empowers the Registrar to impose administrative fines on persons who commit a prescribed breach of the legislation. The fine for a breach is five thousand dollars. The Registrar is empowered to impose further fines of one thousand dollars for every month during which the breach continues. Clause 27 provides the criminal penalties for legal persons that contravene specified provisions of the legislation. The penalties on summary conviction for contravention of section 6, 8, 11, 13 or 14 range from twenty-five thousand dollars for a first offence to one hundred thousand dollars for subsequent offences. Where a legal person, other than a limited partnership, is convicted of a third offence the court may order that the legal person be struck off the register in accordance with Part VI of the Companies Act (2023 Revision), section 31 of the Limited Liability Partnership Act (2023 Revision) or section 37 of the Exempted Limited Partnership Act (2021 Revision). A corporate services provider who fails to issue a notice as required under section 19(1) commits an offence and is liable on summary conviction to a fine of twenty-five thousand dollars for the first offence and for subsequent offences, to a fine of one hundred thousand dollars. A person who fails to comply with a notice sent in accordance with section 8 or 14 commits an offence and is liable on conviction on indictment to a fine of twenty-five thousand dollars in the case of a first offence. Where there are subsequent offences, the offender may be liable to a fine of fifty thousand dollars or to imprisonment for a term of two years or to both the fine and term of imprisonment. PART 7 - MISCELLANEOUS Part 7 contains clauses 28 \u2013 35 and provides for general matters in the legislation. Clause 28 empowers the competent authority to issue guidance for the purpose of giving practical guidance including guidance regarding the interpretation of \u201cbeneficial ownership\u201d and \u201cultimate effective control\u201d and on the enforcement of administrative fines under the legislation. Beneficial Ownership Transparency Bill, 2023 Objects and Reasons Introduced Clause 29 empowers the Registrar to make rules providing for aggravating and mitigating factors relating to administrative fines and the publication of details related to enforcement actions imposed in accordance with the legislation. Clause 30 empowers the Cabinet to make regulations for the effective implementation of the legislation. The clause also, among other things, empowers the Cabinet to make regulations regarding the interpretation of specified terms. Clause 31 provides that the Cabinet may by order amend the definitions or interpretation of terms set out in section 2 of the legislation. Clause 32 provides for the protection of civil servants from liability in the discharge of their functions except where it is shown that the act or omission was in bad faith. Clause 33 provides that in the event of an inconsistency between the Act and any related legislation, the Act prevails to the extent of the inconsistency. The clause sets out the related legislation which are the Companies Act (2023 Revision), the Limited Liability Companies Act (2023 Revision), the Partnership Act (2013 Revision), the Limited Liability Partnership Act (2023 Revision) and the Exempted Limited Partnership Act (2021 Revision). Clause 34 provides that the competent authority shall execute searches of a beneficial ownership register by means of the search platform where there are certified requests in relation to a jurisdiction listed in the Schedule.  A jurisdiction listed in the Schedule is one which has entered into an agreement with the Government regarding the sharing of beneficial ownership information. Clause 35 sets out savings and transitional provisions. The Schedule provides for the countries or territories that have entered into agreements with the Government for the sharing of beneficial ownership information. Beneficial Ownership Transparency Bill, 2023 Arrangement of Clauses Introduced BENEFICIAL OWNERSHIP TRANSPARENCY BILL, 2023 Arrangement of Clauses Clause PART 1 - PRELIMINARY 1. 2. 3. 4.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_5\", \"num\": \"5.\", \"text\": \"PART 2 - IDENTIFICATION OF REGISTRABLE BENEFICIAL OWNERS 6. 7. 8. 9. 10. 11.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_12\", \"num\": \"12.\", \"text\": \"PART 3 - BENEFICIAL OWNERSHIP REGISTER 13. 14.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_15\", \"num\": \"15.\", \"text\": \"Arrangement of Clauses Beneficial Ownership Transparency Bill, 2023 Introduced 16.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_17\", \"num\": \"17.\", \"text\": \"PART 4 - RESTRICTIONS NOTICE 18. 19. 20.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_21\", \"num\": \"21.\", \"text\": \"PART 5 - ACCESS TO BENEFICIAL OWNERSHIP INFORMATION 22.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_23\", \"num\": \"23.\", \"text\": \"PART 6 - POWERS AND ENFORCEMENT 24. 25. 26.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_27\", \"num\": \"27.\", \"text\": \"PART 7 - MISCELLANEOUS 28. 29. 30. 31. 32. 33. 34.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_35\", \"num\": \"35.\", \"text\": \"SCHEDULE COUNTRIES OR TERRITORIES THAT HAVE ENTERED INTO AGREEMENTS WITH THE GOVERNMENT FOR THE SHARING OF BENEFICIAL OWNERSHIP INFORMATION Beneficial Ownership Transparency Bill, 2023 Clause 1 Introduced BENEFICIAL OWNERSHIP TRANSPARENCY BILL, 2023 A BILL FOR AN ACT TO PROVIDE FOR THE CONSOLIDATION AND ENHANCEMENT OF THE BENEFICIAL OWNERSHIP LEGISLATIVE FRAMEWORK IN THE ISLANDS; AND FOR INCIDENTAL AND CONNECTED PURPOSES ENACTED by the Legislature of the Cayman Islands. PART 1 - PRELIMINARY\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_1\", \"num\": \"1.\", \"text\": \"Short title and commencement 1. (1) This Act may be cited as the Beneficial Ownership Transparency Act, 2023. (2) This Act comes into force on such date as may be appointed by Order made by Cabinet and different dates may be appointed for different provisions of this Act and in relation to different matters.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_2\", \"num\": \"2.\", \"text\": \"Interpretation 2. (1) In this Act \u2014 \u201capproved stock exchange\u201d means a stock exchange listed in Schedule 4 of the Companies Act (2023 Revision); \u201cbeneficial owner\u201d in relation to a legal person has the meaning set out under section 4; Clause 2 Beneficial Ownership Transparency Bill, 2023 Introduced \u201cbeneficial ownership register\u201d means the register established and maintained pursuant to section 13; \u201ccompany\u201d means a company that is incorporated, formed or registered (including by way of continuation) in the Islands under the laws of the Islands except a foreign company; \u201ccompetent authority\u201d has the meaning given by section 5; \u201ccorporate services provider\u201d means \u2014 (a) a person that provides registered office services to a legal person under the Companies Management Act (2021 Revision), the Banks and Trust Companies Act (2021 Revision), the Insurance Act, 2010 or any other regulatory law pursuant to which the person is licensed or permitted to provide registered office services; or (b) in the case of an ordinary resident company which has not engaged a person described in paragraph (a), the ordinary resident company itself; \u201cexempted limited partnership\u201d means an exempted limited partnership registered under section 9 of the Exempted Limited Partnership Act (2021 Revision); \u201cforeign company\u201d means a foreign company under Part IX of the Companies Act (2023 Revision); \u201cforeign limited partnership\u201d has the meaning assigned under section 42(1) of the Exempted Limited Partnership Act (2021 Revision); \u201cfoundation company\u201d means a company declared as a foundation company under section 5 of the Foundation Companies Act, 2017; \u201cgovernment entity\u201d means the government of a jurisdiction, any political subdivision of a jurisdiction, a ministry, department, statutory authority or any wholly owned agency of a jurisdiction; \u201cindividual\u201d means a natural person; \u201clegal person\u201d has the meaning given by section 3; \u201clicensed financial institution\u201d means a person that is licensed under a regulatory law; \u201clicensed fund administrator\u201d means a person that holds a Mutual Fund Administrators Licence under the Mutual Funds Act (2021 Revision); \u201climited liability company\u201d means a limited liability company registered under the Limited Liability Companies Act (2023 Revision) except a foreign entity as defined in section 2 of that Act; \u201climited liability partnership\u201d means a limited liability partnership registered under the Limited Liability Partnership Act (2023 Revision) except a foreign limited liability partnership as defined in section 39(21) of that Act; Beneficial Ownership Transparency Bill, 2023 Clause 2 Introduced \u201climited partnership\u201d means a limited partnership registered under the Partnership Act (2013 Revision); \u201cMinister\u201d means the Minister responsible for financial services; \u201cordinary resident company\u201d means a company which carries on business in the Islands in accordance with section 2(2) of the Local Companies (Control) Act (2019 Revision); \u201cpartnership interest\u201d means the interest of a partner in a limited partnership, exempted limited partnership or limited liability partnership in respect of profit, capital and voting or other rights, benefits or obligations to which the partner is entitled or subject pursuant to the partnership agreement; \u201cregistered shareholder\u201d means a person who is named as a shareholder of a company or a member of a company on the register of members of the company; \u201cregistrable beneficial owner\u201d has the meaning set out in section 7; \u201cRegistrar\u201d, in relation to \u2014 (a) a company, means the person appointed as such under section 3(1) of the Companies Act (2023 Revision); (b) an exempted limited partnership, means the person described in section 8 of the Exempted Limited Partnership Act (2021 Revision); (c) a limited liability company, means the person described in section 4 of the Limited Liability Companies Act (2023 Revision); (d) a limited liability partnership, means the person described in section 44(1) of the Limited Liability Partnership Act (2023 Revision); and (e) a limited partnership, means the person described in section 48 of the Partnership Act (2013 Revision); \u201cregulatory law\u201d means a law defined as such in section 2 of the Monetary Authority Act (2020 Revision), other than the Directors Registration and Licensing Act, 2014; \u201crelevant interest\u201d means an interest that a person holds in a legal person consisting of \u2014 (a) a partnership interest or shares or voting rights in the legal person; or (b) ultimate effective control over the management of the legal person; \u201creportable legal entity\u201d, in relation to a legal person, means another legal person, other than a foreign company, foreign entity or a foreign limited partnership, that if it were an individual would be a beneficial owner of the first mentioned legal person; \u201crequired particulars\u201d has the meaning set out under section 12; \u201crestrictions notice\u201d means a notice issued under section 19; \u201cspecified conditions\u201d means the conditions specified in section 4(1); and Clause 3 Beneficial Ownership Transparency Bill, 2023 Introduced \u201cultimate effective control\u201d includes ownership or control exercised through a chain of ownership or by means of control other than direct control. (2) Notwithstanding the provisions of any other law, for the purposes of this Act, the following persons are considered individuals \u2014 (a) a corporation sole; (b) a government or government department of a country or territory or a part of a country or territory; (c) an international organization whose members include two or more countries or territories (or their governments); and (d) a public authority.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_3\", \"num\": \"3.\", \"text\": \"Meaning of legal person 3. A legal person for the purposes of this Act means \u2014 (a) a company; (b) a limited liability company; (c) a limited liability partnership; (d) a limited partnership; (e) a foundation company; (f) an exempted limited partnership; or (g) any other legal person that may be prescribed in regulations.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_4\", \"num\": \"4.\", \"text\": \"Meaning of beneficial owner 4. (1) In this Act, \u201cbeneficial owner\u201d in relation to a legal person means an individual who meets any of the following specified conditions \u2014 (a) the individual ultimately owns or controls, whether through direct or indirect ownership or control, twenty-five per cent or more of the shares, voting rights or partnership interests in the legal person; (b) the individual otherwise exercises ultimate effective control over the management of the legal person; or (c) the individual is identified as exercising control of the legal person through other means, including as a senior managing official, where there is no individual who exerts control pursuant to paragraph (a) or (b). (2) An individual that meets one or more of the specified conditions under subsection (1) is considered a beneficial owner except where that individual operates solely in the capacity of a professional advisor or professional manager. (3) Where, in relation to a legal person \u2014 (a) no individual meets any of the specified conditions under subsection (1); and Beneficial Ownership Transparency Bill, 2023 Clause 5 Introduced (b) the trustees of a trust that is the beneficial owner of the legal person meet one of the specified conditions under subsection (1) in their capacities as trustees of a trust, the trustees of the trust are the beneficial owners of the legal person if they have ultimate effective control over the activities of the trust other than solely in the capacity of a professional advisor or professional manager. (4) For the purposes of this section \u2014 \u201cprofessional advisor\u201d includes \u2014 (a) a lawyer; (b) an accountant; or (c) a financial advisor who provides advice or direction in a professional capacity; \u201cprofessional manager\u201d includes \u2014 (a) a liquidator; (b) a receiver; or (c) a restructuring officer who exercises a statutory function; and \u201csenior managing official\u201d includes a director or a chief executive officer of the legal person. 5. Competent authority 5. The Minister is the competent authority for the purposes of this Act and shall carry out the functions of the competent authority under this Act whether acting alone or through a person designated by the Minister to act for any specific purpose. PART 2 - IDENTIFICATION OF REGISTRABLE BENEFICIAL OWNERS\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_6\", \"num\": \"6.\", \"text\": \"Duty of legal persons to identify beneficial owners, etc. 6. (1) A legal person that is a category of legal person under section 12(1)(a), (b), (c) or (d) shall provide to its corporate services provider written confirmation of its category and the required particulars. (2) A legal person under section 12(1)(e) shall identify \u2014 (a) every individual that is a beneficial owner of the legal person; and (b) every reportable legal entity. (3) A legal person under section 12(1)(e) shall provide in writing to its corporate services provider the required current and valid required particulars of Clause 7 Beneficial Ownership Transparency Bill, 2023 Introduced registrable beneficial owners in respect of that legal person as soon as those required particulars have been confirmed. (4) For the purposes of this section, the required particulars are considered to have been confirmed if \u2014 (a) the individual, the reportable legal entity or legal person to whom the required particulars relate supplied or confirmed the required particulars; (b) another person supplied or confirmed the required particulars with the consent of the individual, the reportable legal entity or legal person to whom the required particulars relate; or (c) the required particulars were included in a statement of initial significant control delivered to the Registrar by subscribers or partners wishing to form a legal person.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_7\", \"num\": \"7.\", \"text\": \"Registrable beneficial owner 7. (1) The following are registrable beneficial owners in relation to a legal person \u2014 (a) an individual that the legal person identifies pursuant to section 6(2)(a) as a beneficial owner of the legal person; or (b) a reportable legal entity identified pursuant to section 6(2)(b) \u2014 (i) that directly holds a relevant interest in the legal person or meets one or more of the specified conditions; or (ii) through which any beneficial owner or reportable legal entity indirectly holds a relevant interest in the legal person. (2) The question as to whether a person is a registrable beneficial owner shall be determined in such manner as may be prescribed.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_8\", \"num\": \"8.\", \"text\": \"Duty to give notice to registrable beneficial owners 8. (1) Subject to subsection (5), a legal person shall give notice in writing to beneficial owners and reportable legal entities identified by the legal person under section 6 and to any person that it knows, or has reasonable cause to believe, is a registrable beneficial owner in relation to it. (2) The notice under subsection (1) shall require the persons to whom it is addressed, no later than thirty days after the receipt of the notice \u2014 (a) to state whether or not they are registrable beneficial owners within the meaning of this Act; and (b) if the person is a registrable beneficial owner, to confirm or correct any required particulars that are included in the notice and to supply any required particulars that are missing from the notice. (3) A legal person shall also give notice in writing to a person holding a relevant interest in \u2014 Beneficial Ownership Transparency Bill, 2023 Clause 9 Introduced (a) the legal person; or (b) another legal person that the first mentioned legal person knows or has reasonable cause to believe is a reportable legal entity in relation to that other legal person. (4) A notice under subsection (3) shall require the person to whom it is addressed \u2014 (a) to state whether or not the person knows the identity of a registrable beneficial owner or any person likely to have that knowledge; and (b) if the person is required to provide a statement under paragraph (a), to supply, at the expense of the legal person, any required particulars in respect of such registrable beneficial owners that are within the addressee\u2019s knowledge no later than thirty days after receipt of the notice. (5) A legal person is not required to give a notice to an individual or a reportable legal entity if \u2014 (a) the legal person knows that the individual or reportable legal entity is not a registrable beneficial owner; or (b) the legal person has already been informed of the individual\u2019s or reportable legal entity\u2019s status as a registrable beneficial owner in relation to it, and has received all the required particulars. (6) A person to which a notice under this section is given is not required by that notice to disclose any information \u2014 (a) in respect of which legal professional privilege applies; or (b) that the person is prohibited by any law applicable in the Islands from disclosing.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_9\", \"num\": \"9.\", \"text\": \"Duty of registrable beneficial owners to supply information 9. (1) A registrable beneficial owner shall \u2014 (a) notify the legal person that the said registrable beneficial owner is a registrable beneficial owner in relation to the legal person; (b) state the date, to the best of the person\u2019s knowledge, on which the person became a registrable beneficial owner in relation to the legal person; and (c) give the legal person the required particulars. (2) This section applies to a person if \u2014 (a) the person is a registrable beneficial owner in relation to a legal person; (b) the person has no reason to believe that the said person\u2019s required particulars are stated in the legal person\u2019s beneficial ownership register; and (c) the person has not received a notice from the legal person under section 8. Clause 10 Beneficial Ownership Transparency Bill, 2023 Introduced (3) The duty under subsection (1) shall be complied with by the end of the period of thirty days beginning with the day on which all of the conditions in subsections (2)(a) through (2)(c) are first met with respect to the person.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_10\", \"num\": \"10.\", \"text\": \"Exemption 10. (1) The competent authority, if satisfied, having regard to any undertaking given by an individual or a legal person, that there are special reasons for an exemption from compliance with a notice or duty under this Act, may exempt \u2014 (a) the individual or legal person from complying with a notice issued under section 8; (b) the legal person from taking steps to identify the individual or legal person or give notice under section 8 to, or with respect to, either the individual or legal person; (c) any person from sending a notice or giving information under section 8; (d) the individual or legal person from the duties imposed by sections 9 and 14; or (e) the individual or legal person from being entered on a legal person\u2019s beneficial ownership register as a registrable beneficial owner in relation to any legal person. (2) The competent authority shall exercise the exemption powers in subsection (1) in accordance with the criteria as may be prescribed. (3) A company designated as a company to which section 80 of the Companies Act (2023 Revision) applies is exempt from the provisions of this Act.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_11\", \"num\": \"11.\", \"text\": \"Corporate services providers to review particulars 11. (1) A corporate services provider shall \u2014 (a) review the required particulars provided under section 6(1) by the legal person; and (b) take reasonable measures to verify the identity of the beneficial owner or reportable legal entity, using information obtained from reliable sources, so as to be satisfied that the required particulars are accurate and current before entering them in the legal person\u2019s beneficial ownership register in the prescribed form and manner. (2) A corporate services provider shall provide the required particulars referred to in subsection (1) to the competent authority at such intervals as may be prescribed in accordance with section 13(3). (3) There is no requirement to enter required particulars concerning an individual or reportable legal entity that is not a registrable beneficial owner. Beneficial Ownership Transparency Bill, 2023 Clause 12 Introduced (4) For the purposes of this section, reasonable measures are considered to have been undertaken to verify the required particulars if the required particulars have been validated against data from reliable sources. (5) For the purposes of this section, \u201creliable sources\u201d means independent source documents or information issued by a government entity, a licensed financial institution or similar originator or issuer of information that is well known and considered reputable. 12. Required particulars and written confirmation required for categories of legal persons 12. (1) A corporate services provider shall provide the competent authority with written confirmation as to the legal person\u2019s category stating whether the legal person is \u2014 (a) listed, or is a subsidiary of a listed entity, on the Cayman Islands Stock Exchange or an approved stock exchange; (b) licenced under a regulatory law; (c) a fund registered under the Private Funds Act (2021 Revision) or the Mutual Funds Act (2021 Revision); (d) exempted by the Cabinet by virtue of this Act; or (e) another legal person not falling within, or not opting to fall within, paragraphs (a) through (d). (2) For the purposes of subsection (1)(a), a legal person is a subsidiary of a listed entity if \u2014 (a) the listed entity holds seventy-five per cent or more of the shares or voting rights in the subsidiary legal person; (b) the listed entity exercises ultimate effective control over the subsidiary legal person; or (c) the listed entity controls the subsidiary legal person by other means. (3) The required particulars for the category of legal person shall be provided by way of the search platform maintained pursuant to section 22 in the form, in the manner and at such intervals as are required of corporate services providers in accordance with section 13(3). (4) The written confirmation of the category of legal person shall include the following information \u2014 (a) for particulars under subsection (1)(a), the name and jurisdiction of the stock exchange; (b) for particulars under subsection (1)(b), the regulatory law under which the legal person is licenced; Clause 12 Beneficial Ownership Transparency Bill, 2023 Introduced (c) for particulars under subsection (1)(c), the contact details of a licensed fund administrator or another contact person licensed or registered under a regulatory law for providing beneficial ownership information located within the Islands; (d) for particulars under subsection (1)(d), such information as may be prescribed; (e) for persons under subsection (1)(e), where the registrable beneficial owner is an individual, the required particulars set out in subsection (5) or (6) or, where the registrable beneficial owner is a reportable legal entity, the required particulars set out in subsection (7). (5) The required particulars of an individual, except an individual under section 2(2), are \u2014 (a) full legal name; (b) residential address; (c) an address for service of notices under this Act; (d) date of birth; (e) nationality; (f) information from the individual\u2019s unexpired and valid passport, driver\u2019s licence or other government-issued document that identifies the individual including \u2014 (i) identification number; (ii) country of issue; and (iii) date of issue and of expiry; (g) nature in which the individual owns or exercises control of the legal person; and (h) the date on which the individual became or ceased to be a registrable beneficial owner in relation to the legal person in question. (6) The required particulars of an individual under section 2(2) are \u2014 (a) name; (b) principal office; (c) the legal form of the individual and the law by which the individual is governed; and (d) the date on which the individual became or ceased to be registrable beneficial owner in relation to the legal person in question. (7) The required particulars of a reportable legal entity are \u2014 (a) corporate or firm name; (b) registered or principal office; Beneficial Ownership Transparency Bill, 2023 Clause 13 Introduced (c) the legal form of the entity and the law by which it is governed; (d) the nature of the reportable legal entity\u2019s ownership or its exercise of control of the legal person; (e) the register in which it is entered and its registration number in that register; and (f) the date on which it became or ceased to be a registrable beneficial owner in relation to the legal person in question. (8) A licensed fund administrator or the contact person under subsection (4)(c) shall provide the competent authority with the requested beneficial ownership information within twenty-four hours of a request being made or at any other time as the competent authority may reasonably stipulate. (9) Where a legal person is being wound up, the corporate services provider or the liquidator shall provide the competent authority with the details of the provisional liquidator, liquidator or joint liquidator along with the details of the registrable beneficial owners as at the date of the appointment of the provisional liquidator, liquidator or joint liquidator as soon as may be reasonably practicable. (10) Where no registrable beneficial owners are identified, written confirmation of a nil return shall be provided to the competent authority. PART 3 - BENEFICIAL OWNERSHIP REGISTER\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_13\", \"num\": \"13.\", \"text\": \"Duty to establish and maintain register 13. (1) A corporate services provider shall establish and maintain a register containing adequate, accurate and current beneficial ownership information in relation to the legal person in the form of required particulars of registrable beneficial owners. (2) Where an ordinary resident company does not engage a corporate services provider for the provision of registered office services, the ordinary resident company shall establish and maintain its own beneficial ownership register. (3) The corporate services provider shall regularly deposit beneficial ownership information received from the legal person that has engaged the corporate services provider in the form, in the manner and at such intervals as may be prescribed in regulations. (4) For the purposes of this section \u2014 (a) \u201cadequate beneficial ownership information\u201d means information that is sufficient to identify an individual who is a beneficial owner and the means and the mechanisms through which the individual exercises beneficial ownership or control; Clause 14 Beneficial Ownership Transparency Bill, 2023 Introduced (b) \u201caccurate beneficial ownership information\u201d means information which has been verified to confirm its accuracy in keeping with section 11; and (c) \u201ccurrent beneficial ownership information\u201d means beneficial ownership information which \u2014 (i) is as current as possible with the corporate services provider depositing, in accordance with the intervals prescribed by subsection (3); and (ii) is received from the legal person no later than thirty days after the legal person becomes aware of the change occurring in accordance with section 14(1).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_14\", \"num\": \"14.\", \"text\": \"Duty to keep register current 14. (1) If a relevant change occurs with respect to a registrable beneficial owner whose required particulars are stated in its beneficial ownership register, the legal person shall give notice to the registrable beneficial owner, as soon as reasonably practicable, (that being no later than thirty days after it learns of the change or had reasonable cause to believe that the change had occurred), requesting confirmation of the change. (2) If the registrable beneficial owner to which a notice is sent under subsection (1) confirms the relevant change, the legal person shall record the details of the change and instruct the corporate services provider to enter in the legal person\u2019s beneficial ownership register in the prescribed form and manner the following \u2014 (a) the details of the relevant change confirmed by the legal person; (b) the date on which the change was made to the beneficial ownership register; and (c) whether there are further alterations to be made. (3) For the purposes of sections 14 and 15, a relevant change occurs if \u2014 (a) the registrable beneficial owner ceases to be a registrable beneficial owner in relation to the legal person; or (b) any other change occurs as a result of which the required particulars stated respecting the registrable beneficial owner in the legal person\u2019s beneficial ownership register are incorrect, incomplete or not current. (4) A relevant change with respect to a registrable beneficial owner is considered to have been confirmed if \u2014 (a) the legal person has given notice to the registrable beneficial owner requesting confirmation, of the relevant change, the date of the change and the relevant particulars included in the notice within the period of thirty days from the date of the notice; and Beneficial Ownership Transparency Bill, 2023 Clause 15 Introduced (b) the details, date and particulars of the change have been supplied or confirmed to the legal person by the registrable beneficial owner, or by another person with the knowledge of the registrable beneficial owner. 15. Duty to notify relevant changes 15. (1) A registrable beneficial owner to which this section applies shall \u2014 (a) notify the legal person of a relevant change; (b) state the date on which the relevant change occurred; and (c) give the legal person any information needed to update the legal person\u2019s beneficial ownership register. (2) This section applies to persons where \u2014 (a) the person has stated that it is a registrable beneficial owner, within the meaning of this Act, in response to a notice received under section 8; or (b) the registrable beneficial owner has reason to believe that its required particulars are stated in a legal person\u2019s beneficial ownership register, and any of the following events occur \u2014 (i) a relevant change, within the meaning of section 14(3), occurs with respect to the registrable beneficial owner; (ii) the registrable beneficial owner knows of the change; (iii) the registrable beneficial owner has no knowledge that the beneficial ownership register has been altered to reflect the change; or (iv) the registrable beneficial owner has not received a notice from the legal person under section 14 by the end of the period of thirty days beginning with the day on which the change occurred. (3) The duty under subsection (1) shall be complied with before the end of the period of thirty days beginning with the day on which the person discovered the relevant change.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_16\", \"num\": \"16.\", \"text\": \"Retention on the register 16. Where an individual or a reportable legal entity is no longer a registrable beneficial owner of a legal person, the corporate services provider engaged by the legal person shall \u2014 (a) remove the entry relating to that individual or reportable legal entity from the legal person\u2019s beneficial ownership register: and (b) retain the record relating to that individual or reportable legal entity for five years from the date on which the individual or reportable legal entity ceased to be a registrable beneficial owner in relation to the legal person. Clause 17 Beneficial Ownership Transparency Bill, 2023 Introduced 17. Power of the Grand Court to rectify beneficial ownership register 17. (1) If \u2014 (a) the name of any individual or reportable legal entity is, without sufficient cause, entered in or omitted from a legal person\u2019s beneficial ownership register as a registrable beneficial owner; or (b) default is made, or unnecessary delay takes place, in entering in a legal person\u2019s beneficial ownership register the fact that an individual or reportable legal entity has ceased to be a registrable beneficial owner, the person aggrieved, may apply to the Grand Court for rectification of the legal person\u2019s beneficial ownership register. (2) The Grand Court may \u2014 (a) refuse the application under subsection (1); or (b) order rectification of the beneficial ownership register and payment by the legal person of any damages sustained by any person aggrieved. (3) On an application under this section, the Grand Court may decide any question \u2014 (a) as to whether the name of any person who is a party to the application should or should not be entered in or omitted from the legal person\u2019s beneficial ownership register; and (b) that is necessary or expedient to be decided for rectification of the legal person\u2019s beneficial ownership register. (4) If the Grand Court makes an order for rectification of a legal person\u2019s beneficial ownership register against the legal person, it shall direct that notice of the rectification be given to the competent authority. PART 4 - RESTRICTIONS NOTICE\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_18\", \"num\": \"18.\", \"text\": \"Consequences of failing to disclose beneficial ownership 18. (1) If a legal person\u2019s corporate services provider is of the opinion that the legal person \u2014 (a) has failed to comply with section 8 or 14 without reasonable excuse; or (b) has made a statement regarding matters relevant to this Act to the corporate services provider that is false or misleading, the corporate services provider shall give notice of this to the legal person. (2) On receipt of a notice under subsection (1), the legal person shall provide the corporate services provider with \u2014 Beneficial Ownership Transparency Bill, 2023 Clause 19 Introduced (a) the missing required particulars under section 12 pertaining to registrable beneficial owners; and (b) a justification and a correction respecting any statement identified as being false or misleading in the notice. (3) If the legal person fails to provide the missing particulars referred to in subsection (2)(a) by the end of the period of thirty days beginning with the date of receipt of the notice, the corporate services provider shall \u2014 (a) subject to section 19, issue a restrictions notice to the legal person whose particulars are missing with regard to the shares or other relevant interest; and (b) send a copy of the restrictions notice to the competent authority within fourteen days of issuing it.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_19\", \"num\": \"19.\", \"text\": \"Issue of restrictions notice by corporate services provider 19. (1) The corporate services provider of a legal person to which this Act applies shall send a restrictions notice to the legal person concerning a relevant interest in that legal person if, by the end of the period of thirty days beginning with the date of receipt of the notice \u2014 (a) a notice under section 8 or 14 was served on the legal person; (b) the legal person has not \u2014 (i) received compliance with the notice; or (ii) provided the corporate services provider with a valid reason sufficient to justify the legal person\u2019s failure to comply with the notice; or (c) where the relevant interest is subject to a pre-existing security interest granted to a third party who is not affiliated with the legal person, the restrictions notice shall not take effect. (2) In deciding whether to send a restrictions notice, the corporate services provider shall have regard to the effect of the notice on the rights of persons in respect of the relevant interest, including third parties, persons with a security interest over the relevant interest, registered shareholders and other beneficial owners. (3) A corporate services provider that issues a restrictions notice to a legal person shall, by notice, withdraw the restrictions notice if \u2014 (a) it is satisfied that there is a valid reason to justify the person\u2019s failure to comply with the notice served under section 8 or 14; (b) the notice served under section 8 or 14 is complied with; or (c) the corporate services provider discovers that the rights of a third party in respect of the relevant interest are being unfairly affected by the restrictions notice. Clause 20 Beneficial Ownership Transparency Bill, 2023 Introduced (4) A legal person to whom a restrictions notice is issued under this section may apply to the Grand Court to set aside any restriction imposed by the notice.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_20\", \"num\": \"20.\", \"text\": \"Effect of restrictions notice 20. (1) The effect of a restrictions notice with respect to a relevant interest is as follows \u2014 (a) any transfer or agreement to transfer the relevant interest is void; (b) no rights are exercisable in respect of the relevant interest; (c) no relevant interests may be issued in respect of the relevant interest or in pursuance of an offer made to the person holding the relevant interest; (d)  other than in a liquidation, no payment may be made of sums due from the legal person in respect of the relevant interest, whether in respect of capital or otherwise; and (e) other than in a liquidation, an agreement to transfer any of the following associated rights in relation to the relevant interest is void \u2014 (i) a right to be issued with any shares issued in respect of the relevant interest; or (ii) a right to receive payment of any sums due from the legal person in respect of the relevant interest. (2) This section does not apply to an agreement to transfer a relevant interest referred to in subsection (1)(a) or to an associated right referred to in subsection (1)(e), if the agreement results from the making of an order referred to in section 21(4)(b). 21. Applications to the Grand Court 21. (1) The Grand Court may, on an application by any person aggrieved by a decision of a corporate services provider under section 19, make an order giving directions for the purpose of protecting the rights of third parties, persons with a security interest over the relevant interest, shareholders or other beneficial owners in respect of a relevant interest, if the Court is satisfied that a restrictions notice unfairly affects those rights. (2) An order under subsection (1) \u2014 (a) shall direct, subject to such terms as the Court thinks fit, that certain acts do not constitute a breach of the restrictions placed on the relevant interest by the restrictions notice; (b) shall specify the acts that do not constitute a breach of the restrictions; and (c) may confine the direction to cases where those acts are done by persons, or for purposes, described in the order. (3) A corporate services provider that issues a restrictions notice, or any person aggrieved by such notice, may apply to the Grand Court for an order directing Beneficial Ownership Transparency Bill, 2023 Clause 21 Introduced that the relevant interest cease to be subject to restrictions contained in the restrictions notice. (4) The Grand Court may only make an order under subsection (3) if \u2014 (a) the Court is satisfied that the information required by the notice served under section 8 or 14 has been disclosed to the legal person and no unfair advantage has accrued to any person as a result of the earlier failure to make that disclosure; or (b) the relevant interest is to be transferred for valuable consideration and the Court approves the transfer. (5) An order made by virtue of subsection (4)(b) may continue, in whole or in part, the restrictions referred to in sections 20(1)(c) and (d) insofar as they relate to a right acquired or offer made before the transfer. (6) Where any restrictions continue in force by virtue of subsection (5) \u2014 (a) an application may be made under this section for an order directing that the relevant interest cease to be subject to those restrictions; and (b) subsection (4) does not apply in relation to the making of such an order. (7) On the application by a corporate services provider that issues a restrictions notice, the Grand Court may order that the relevant interest that is subject to restrictions be sold on the condition that the Court approves the sale. (8) A Court that makes an order under subsection (7) may make such further order relating to the sale or transfer of the interest as it thinks fit on application by \u2014 (a) the corporate services provider that issued the restrictions notice; (b) the person appointed in pursuance of the order to effect the sale; or (c) any person with an interest in the relevant interest. (9) On making an order under subsection (7) or (8), the Court may order that the applicant\u2019s costs be paid from the proceeds of sale. (10) If a relevant interest is sold pursuant to an order under subsection (7), (8) or (9), the proceeds of the sale, less the costs of the sale, shall be paid into the Grand Court for the benefit of persons who are beneficially interested in the relevant interest. (11) A person who is beneficially interested in the relevant interest may apply to the Grand Court for the whole or part of those proceeds to be paid to that person. (12) On an application under subsection (11), the Court shall order the payment to the applicant of \u2014 (a) the whole of the proceeds of sale together with any interest on the proceeds; or (b) if another person was also beneficially interested in the relevant interest at the time of the sale, such proportion of the proceeds (and any interest) as Clause 22 Beneficial Ownership Transparency Bill, 2023 Introduced the value of the applicant\u2019s interest bears to the total value of the relevant interest. (13) Where the Court has ordered under subsection (9) that the costs of an applicant be paid from the proceeds of sale, the applicant is entitled to payment of those costs before any person receives any part of the proceeds under this section. PART 5 - ACCESS TO BENEFICIAL OWNERSHIP INFORMATION\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_22\", \"num\": \"22.\", \"text\": \"Access to beneficial ownership information 22. (1) The competent authority shall maintain a search platform by means of which the persons specified in subsection (2) may be provided with access to information on all beneficial ownership registers maintained on behalf of legal persons subject to this Act. (2) For the purposes of subsection (1), the competent authority may provide access to the information on the search platform to \u2014 (a) the Royal Cayman Islands Police Service; (b) the Financial Reporting Authority, established under section 3 of the Proceeds of Crime Act (2020 Revision); (c) the Cayman Islands Monetary Authority established under section 5 of the Monetary Authority Act (2020 Revision); (d) the Anti-Corruption Commission established under section 3 of the AntiCorruption Act (2019 Revision); (e) the Tax Information Authority, designated under section 4 of the Tax Information Authority Act (2021Revision); (f) the Maritime Authority of the Cayman Islands established under section 3 of the Maritime Authority Act (2013 Revision); (g) the Civil Aviation Authority of the Cayman Islands established under section 3 of the Civil Aviation Authority Act (2015 Revision); (h) the Registrar of Lands appointed under section 5 of the Registered Lands Act (2018 Revision); (i) an entity undertaking procurement in accordance with the Procurement Act (2023 Revision); and (j) any other body which is \u2014 (i) assigned responsibility under section 4(9) of the Proceeds of Crime Act (2020 Revision) for monitoring compliance with money laundering regulations made under the Proceeds of Crime Act (2020 Revision); Beneficial Ownership Transparency Bill, 2023 Clause 22 Introduced (ii) a licensed financial institution; or (iii) a designated non-financial business and profession under regulation 55A of the Anti-Money Laundering Regulations (2023 Revision). (3) The competent authority may charge the prescribed fees for access to the information on the search platform. (4) Subject to subsection (5), the competent authority, in respect of the beneficial ownership register of a legal person, may \u2014 (a) provide information to; (b) provide access to; or (c) execute a search on behalf of, the bodies specified in subsections (2)(a) through (i) and subsection (2)(j)(i) in accordance with this Act for the purpose of \u2014 (i) the performance of its functions under this Act; (ii) assisting with the prevention and detection of crime; (iii) furthering the interest of national security; (iv) enabling those listed in subsections (2)(a) through (g) and subsection (2)(j)(i) to fulfil their statutory obligations including statutory obligations with respect to international cooperation; or (v) statistics and preparation of statistical reports. (5) The Cayman Islands Monetary Authority may, in its discretion or upon request, share information with the competent authority in accordance with section 50A of the Monetary Authority Act (2020 Revision). (6) The Cabinet may, subject to affirmative resolution in the Parliament, make Regulations empowering the competent authority to provide access to members of the public to any of the following \u2014 (a) for an individual who is a registrable beneficial owner \u2014 (i) name; (ii) country of residence; (iii) nationality; (iv) month or year of birth or both; and (v) nature of control; and (b) for a reportable legal entity \u2014 (i) name; (ii) registered office; (iii) legal form; (iv) registration number; and Clause 23 Beneficial Ownership Transparency Bill, 2023 Introduced (v) nature of control. (7) The competent authority or the Registrar may restrict or prohibit access to any information on the search platform to the extent that the competent authority or the Registrar sees fit. 23. No disclosure of information 23. (1) Where access is provided to the search platform in accordance with sections 22(2)(a) through (i) and 22(2)(j)(i), neither the competent authority nor any employee, servant or agent of the competent authority shall disclose information relating to the search, including the fact that the search was carried out, to any person other than the authorized personnel of the competent authority except where the disclosure is for statistical or reporting purposes. (2) Information maintained by a corporate services provider or the Registrar in respect of the beneficial ownership of a legal person is deemed to be confidential information under the Confidential Information Disclosure Act, 2016 however the disclosure of such information in accordance with this Act does not constitute a breach of the duty of confidence. (3) Subject to sections 18 and 19 of the Tax Information Authority Act (2021 Revision), information deemed to be confidential under subsection (2) shall only be disclosed in accordance with the Confidential Information Disclosure Act, 2016. PART 6 - POWERS AND ENFORCEMENT\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_24\", \"num\": \"24.\", \"text\": \"Competent authority or the Registrar may request information 24. (1) The competent authority or the Registrar may request, by notice in writing, any information or documentation from a legal person or corporate services provider for the purposes of \u2014 (a) carrying out their respective functions under this Act; (b) verifying the accuracy of beneficial ownership information; (c) assisting with the prevention and detection of crime or furthering the interests of national security; or (d) enabling those bodies listed in sections 22(2)(a) through (g) and (2)(j)(i) to fulfil their statutory obligations. (2) A legal person or corporate services provider which receives a notice of request for information under subsection (1) shall comply with the notice within the period and in the manner specified in the request. Beneficial Ownership Transparency Bill, 2023 Clause 25 Introduced\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_25\", \"num\": \"25.\", \"text\": \"Duty of the corporate services provider to forward correspondence 25. (1) Where the competent authority or Registrar sends correspondence or documentation to a legal person or an individual connected to that legal person at the address of its corporate services provider, the corporate services provider shall forward the correspondence or documentation to the legal person or individual to whom it is addressed without delay. (2) Correspondence or documentation under subsection (1) includes requests for information sent by the competent authority under section 24 and administrative fines notices sent by the Registrar under section 26.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_26\", \"num\": \"26.\", \"text\": \"Administrative fines 26. (1) The Registrar may impose an administrative fine on a person who commits a prescribed breach. (2) The fine for a breach is five thousand dollars. (3) The Registrar may \u2014 (a) in addition to the fine for the initial breach, impose a further fine of one thousand dollars for every month that the breach continues, until one of the following occurs \u2014 (i) the breach stops or is remedied; (ii) payment of the initial fine and all fines imposed for the continuing breach; or (iii) the total of the initial fine and all fines for the continuing breach amounts to twenty-five thousand dollars; and (b) reduce an administrative fine in circumstances as may be prescribed. (4) A fine \u2014 (a) may be imposed for a breach that is not an offence; and (b) shall not be imposed by the Registrar where criminal proceedings have commenced or have been concluded in relation to the acts that constitute the breach. (5) The penalty for a breach which is also an offence under this Act or any regulations made under this Act is not limited by the fine under this section or by the penalties under sections 6(2)(ii) and 8 of the Criminal Procedure Code (2021 Revision). (6) The Registrar shall not impose a fine after the expiration of six months after the date on which the Registrar became aware of the occurrence of the breach. (7) The Registrar becomes aware of the breach when the information is first received from which the breach could reasonably have been inferred. Clause 27 Beneficial Ownership Transparency Bill, 2023 Introduced (8) If a breach under this Act is an offence, a fine for the breach shall not preclude a prosecution for the offence or liability for any prescribed fees. (9) Where an administrative fine remains unpaid for ninety days after imposition of the fine, the Registrar may strike or remove the legal person off the register in accordance with the relevant provision as follows \u2014 (a) Part VI of the Companies Act (2023 Revision); (b) section 40   of the Limited Liability Companies Act (2023 Revision); or (c) section 31 of the Limited Liability Partnership Act (2023 Revision), and the legal person shall thereupon be dissolved. (10) An administrative fine may be recovered as a debt due to the Crown. (11) A person who is aggrieved by a decision of the Registrar to impose an administrative fine under this section may appeal in accordance with the prescribed procedure. (12) The Cabinet may make Regulations providing for appeals, including appeals against decisions of the Registrar to impose an administrative fine, to strike off or remove the legal person from the register or for the competent authority to vary the amount of the fine imposed on appeal. 27. Criminal penalties 27. (1) A legal person that contravenes section 6 or 14(2) or fails to issue a notice as required by section 8 or 14, commits an offence and is liable on summary conviction for each such contravention \u2014 (a) in the case of a first offence, to a fine of twenty-five thousand dollars; or (b) in the case of a second or subsequent offence, to a fine of one hundred thousand dollars. (2) Where a legal person, other than a limited partnership, is convicted of a third offence under subsection (1), the court may order that the legal person be struck off the register by the Registrar in accordance with Part VI of the Companies Act (2023 Revision), section 31 of the Limited Liability Partnership Act (2023 Revision) or section 37 of the Exempted Limited Partnership Act (2021 Revision) as if it is a legal person that the Registrar has reasonable cause to believe is not carrying on business or is not in operation. (3) A corporate services provider who contravenes section 11 or 13 or fails to issue a notice as required by section 19(1) commits an offence and is liable on summary conviction \u2014 (a) in the case of a first offence, to a fine of twenty-five thousand dollars; or (b) in the case of a second or subsequent offence, to a fine of one hundred thousand dollars. Beneficial Ownership Transparency Bill, 2023 Clause 27 Introduced (4) A person to whom a notice under section 8 or 14 is addressed commits an offence if the person \u2014 (a) fails to comply with the notice; or (b) in purported compliance with the notice \u2014 (i) makes a statement that the person knows to be false; or (ii) recklessly makes a statement that is false. (5) A person who commits an offence under subsection (4) is liable \u2014 (a) on conviction on indictment \u2014 (i) in the case of a first offence, to a fine of twenty-five thousand dollars; or (ii) in the case of a second or subsequent offence, to a fine of fifty thousand dollars or to imprisonment for a term of two years, or to both; or (b) on summary conviction to a fine of five thousand dollars or to imprisonment for a term of twelve months, or to both. (6) A person does not commit an offence under subsection (4)(a) if the person proves that the requirement to give information was frivolous or vexatious. (7) A person commits an offence if the person \u2014 (a) fails to comply with a duty under section 9 or 15 within the time required by the respective section; or (b) in purported compliance with such a duty \u2014 (i) makes a statement that the person knows to be false; or (ii) recklessly makes a statement that is false. (8) A person who commits an offence under subsection (7) is liable \u2014 (a) on conviction on indictment \u2014 (i) in the case of a first offence, to a fine of twenty-five thousand dollars; or (ii) in the case of a second or subsequent offence, to a fine of fifty thousand dollars or to imprisonment for a term of two years, or to both; or (b) on summary conviction to a fine of five thousand dollars or to imprisonment for a term of twelve months, or to both. (9) A person who conducts a search of a legal person\u2019s beneficial ownership register contrary to section 22(4) or discloses beneficial ownership information contrary to section 23 commits an offence and is liable on summary conviction to a fine of five thousand dollars or to imprisonment for twelve months, or to both. Clause 28 Beneficial Ownership Transparency Bill, 2023 Introduced (10) A person commits an offence who knowing that a relevant interest is subject to restriction \u2014 (a) exercises or purports to exercise any right to dispose of the relevant interest; (b) exercises or purports to exercise any right to dispose of any right to be issued with the relevant interest; or (c) votes in respect of the relevant interest (whether as holder of the interest or as proxy) or appoints a proxy to vote in respect of the relevant interest. (11) A person commits an offence if the person \u2014 (a) has a relevant interest that the person knows to be subject to restrictions or is entitled to an associated right; and (b) enters into an agreement that is void by virtue of section 20(1)(a) or 20(1)(e). (12) A person who commits an offence under subsection (11) is liable on summary conviction to a fine of five thousand dollars. (13) A person does not commit an offence if the person contravenes subsection (10) or (11) in compliance with a direction of the Grand Court given under section 21. (14) Subject to a direction given by the Grand Court under section 21(1), a legal person that issues interests or shares in contravention of a restriction imposed by virtue of a restrictions notice, commits an offence and is liable on summary conviction to a fine of five thousand dollars. (15) Where a legal person commits an offence under this Act, and it is proved that the offence was committed with the consent or connivance of, or was attributable to wilful default on the part of a manager, director, member or other officer concerned in the management of the legal person, the manager, director, member or other officer commits the same offence and is liable to the same penalty as the legal person. PART 7 - MISCELLANEOUS\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_28\", \"num\": \"28.\", \"text\": \"Competent authority may issue guidance 28. (1) The competent authority may issue guidance for the purpose of giving practical guidance with respect to this Act, including guidance \u2014 (a) to assist with the interpretation of \u201cbeneficial ownership\u201d and \u201cultimate effective control\u201d; and (b) on the enforcement of administrative fines under this Act. Beneficial Ownership Transparency Bill, 2023 Clause 29 Introduced (2) A legal person, a corporate services provider and a registrable beneficial owner shall have regard to the guidance issued under subsection (1). (3) The competent authority shall publish the guidance issued under subsection (1) in any manner that the competent authority considers will bring the guidance to the attention of the persons who are most likely to be affected by it. (4) The competent authority may revise guidance issued under subsection (1) from time to time and any reference to guidance includes a reference to revised guidance.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_29\", \"num\": \"29.\", \"text\": \"Registrar's rule-making power 29. The Registrar may, by rules published in the Gazette, provide for \u2014 (a) aggravating and mitigating factors in relation to the imposition of administrative fines; and (b) the publishing of details related to enforcement actions, including administrative fines, imposed in accordance with this Act.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_30\", \"num\": \"30.\", \"text\": \"Regulations 30. The Cabinet may make regulations for the effective implementation of this Act including regulations \u2014 (a) providing for anything required to be prescribed under this Act; (b) specifying criteria for the exercise of the competent authority\u2019s exemption powers under section 10; (c) respecting the giving of notices under section 8 or 14, including the form, content and manner of giving such notices; (d) regarding the addition to or removal from any of the lists of required particulars; (e) requiring additional matters to be included in a legal person\u2019s beneficial ownership register including the reporting of dual or multiple nationalities; (f) providing for applications to require the competent authority, the Registrar, a corporate services provider or a legal person to refrain from using or disclosing particulars of a prescribed kind from a legal person\u2019s beneficial ownership register (or to refrain from doing so except in prescribed circumstances) where an application is made to the competent authority requesting them to refrain from so doing; (g) specifying the manner and form in which a legal person shall keep its beneficial ownership register; (h) respecting the procedure to be followed by corporate services providers issuing and withdrawing restrictions notices, including regulations providing for \u2014 Clause 31 Beneficial Ownership Transparency Bill, 2023 Introduced (i) the form and content of restrictions notices, and the manner in which they are to be given; (ii) the factors to be taken into account in deciding what is to be considered as a reason sufficient to justify a person\u2019s failure to comply with a notice issued under section 8 or 14; and (iii) the effect of withdrawing a restrictions notice on matters that are pending with respect to the relevant interest when the notice is withdrawn; (i) requiring the reporting of discrepancies in beneficial ownership information to the Registrar by every person who, by virtue of section 22(2) or (6), has access to this information; (j) respecting the interpretation of the terms \u201cbeneficial owner\u201d, \u201cregistrable beneficial owner\u201d and \u201cspecified conditions\u201d; (k) respecting the replacement of any or all references in section 4 to a percentage with references to a larger or smaller percentage; (l) adjusting the specified conditions in section 4 so as to include circumstances that give individuals a level of control over a legal person broadly similar to the level of control given by the other specified conditions; (m) specifying the circumstances in which a person holds an interest in a legal person or meets a specified condition in relation to the legal person directly or indirectly through any number of persons or arrangements of any description; (n) providing for actions that may be taken by the Registrar following receipt of a report of discrepancies in beneficial ownership information; (o) adding or removing from the list of bodies in section 22(2); and (p) any other matter required to be prescribed or for the better carrying out of the objects and purposes of this Act.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_31\", \"num\": \"31.\", \"text\": \"Amendments by order 31. The Cabinet may by order \u2014 (a) amend any of the definitions or interpretations of terms set out in section 2; and (b) adding the name of any territory or country to the Schedule or deleting the name of any territory or country from it.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_32\", \"num\": \"32.\", \"text\": \"Protection of civil servants from liability 32. No civil servant shall be liable in damages for anything done or omitted in the discharge of the civil servant\u2019s functions unless it is shown that the act or omission was in bad faith. Beneficial Ownership Transparency Bill, 2023 Clause 33 Introduced\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_33\", \"num\": \"33.\", \"text\": \"Conflict 33. (1) In the event of an inconsistency between this Act and any relevant legislation, this Act prevails to the extent of the inconsistency. (2) In this section, \u201crelevant legislation\u201d means any of the following legislation \u2014 (a) the Companies Act (2023 Revision); (b) the Limited Liability Companies Act (2023Revision); (c) the Partnership Act (2013 Revision); (d) the Limited Liability Partnership Act (2023 Revision); and (e) the Exempted Limited Partnership Act (2021 Revision).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_34\", \"num\": \"34.\", \"text\": \"Agreements regarding sharing of information 34. The competent authority shall execute a search of a beneficial ownership register by means of the search platform if formally requested to do so by the Financial Crime Unit of the Royal Cayman Islands Police Service (\u201cthe Unit\u201d) where a senior official of the Unit certifies that the request for the search is in response to a request from a jurisdiction listed in the Schedule that has entered into an agreement with the Government respecting the sharing of beneficial ownership information made \u2014 (a) by a law enforcement official designated by the agreement; and (b) in compliance with that agreement. 35. Savings and transitional 35. (1) The Cabinet may make regulations to provide for such savings, transitional and consequential provisions to have effect in connection with the coming into force of any provision of this Act as may be necessary or expedient. (2) Regulations made under subsection (1) may be given retrospective operation to a day no earlier than the day that subsection (1) comes into force. (3) The words \u201cbeneficial owner\u201d when used in relation to \u2014 (a) a company, shall have the same meaning as in section 244 of the Companies Act (2023 Revision); (b) a limited liability company, shall have the same meaning as in section 73 of the Limited Liability Companies Act (2023 Revision); and (c) a limited liability partnership, shall have the same meaning as in section 54 of the Limited Liability Partnership Act (2023 Revision), up until the day immediately preceding the commencement of section 4 of this Act. (4) A legal person that is exempt from the requirement to identify and file information with respect to registrable beneficial owners shall continue to be exempt \u2014 Clause 35 Beneficial Ownership Transparency Bill, 2023 Introduced (a) in relation to a legal person under the Companies Act (2023 Revision), in accordance with section 245 of that Act; (b) in relation to a legal person under the Limited Liability Companies Act (2023 Revision), in accordance with section 71 of that Act; and (c) in relation to a legal person under the Limited Liability Partnership Act (2023 Revision), in accordance with section 52 of that Act, up until the day immediately preceding the commencement of sections 12(1) through (3) of this Act. Beneficial Ownership Transparency Bill, 2023 SCHEDULE Introduced SCHEDULE (section 34) COUNTRIES OR TERRITORIES THAT HAVE ENTERED INTO AGREEMENTS WITH THE GOVERNMENT FOR THE SHARING OF BENEFICIAL OWNERSHIP INFORMATION 1. United Kingdom. Passed by the Parliament the              day of                           , 2023. Speaker Clerk of the Parliament\", \"element\": \"section\", \"heading\": null}], \"meta\": {\"notes\": null, \"workflow\": null, \"lifecycle\": {\"source\": \"#cilegis\", \"eventRef\": [{\"eId\": \"e_commence_2022_01_01\", \"date\": \"2022-01-01\", \"type\": \"generation\", \"source\": \"#cilegis\"}]}, \"references\": {\"source\": \"#canary\", \"TLCRole\": [], \"TLCEvent\": [{\"eId\": \"ev_commencement\", \"href\": \"\/akn\/ontology\/canary\/event\/commencement\", \"showAs\": \"commencement\"}], \"TLCPerson\": [], \"TLCConcept\": [{\"eId\": \"inForce\", \"href\": \"\/akn\/ontology\/canary\/concept\/temporal\/in-force\", \"showAs\": \"in force\"}], \"TLCProcess\": [], \"TLCLocation\": [], \"TLCOrganization\": [{\"eId\": \"cilegis\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\", \"showAs\": \"Cayman Islands legislation mirror (kyleg)\"}]}, \"temporalData\": {\"source\": \"#cilegis\", \"temporalGroup\": [{\"eId\": \"tg_inforce_2022_01_01\", \"timeInterval\": [{\"end\": null, \"start\": \"#e_commence_2022_01_01\", \"duration\": null, \"refersTo\": \"#inForce\"}]}]}, \"classification\": null, \"identification\": {\"source\": \"#cilegis\", \"FRBRWork\": {\"FRBRuri\": \"\/akn\/ky\/bill\/2023\/14\", \"FRBRdate\": [{\"date\": \"2022-01-01\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/bill\/2023\/14\/!main\", \"FRBRalias\": [{\"name\": \"cmsId\", \"value\": \"2023-0014\"}], \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRnumber\": \"14 of 2023\", \"FRBRcountry\": \"ky\", \"FRBRsubtype\": \"bill\"}, \"FRBRExpression\": {\"FRBRuri\": \"\/akn\/ky\/bill\/2023\/14\/eng@2022-01-01\", \"FRBRdate\": [{\"date\": \"2022-01-01\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/bill\/2023\/14\/eng@2022-01-01\/!main\", \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRlanguage\": \"eng\"}, \"FRBRManifestation\": {\"FRBRuri\": \"\/akn\/ky\/bill\/2023\/14\/eng@2022-01-01.xml\", \"FRBRdate\": [{\"date\": \"2026-06-22\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/bill\/2023\/14\/eng@2022-01-01.xml\", \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRformat\": \"application\/xml\"}}}, \"name\": \"bill\", \"header\": {\"title\": \"Identification Register Act, 2022 (Commencement) Order, 2023\", \"actNumber\": \"14 of 2023\", \"longTitle\": null}}, \"judgment\": null}}","akn_full_text":"CAYMAN ISLANDS\n\nBENEFICIAL OWNERSHIP\nTRANSPARENCY BILL, 2023\n\nSupplement No. 1 published with Legislation Gazette No. 26 dated 30th August, 2023.\nA BILL FOR AN ACT TO PROVIDE FOR THE CONSOLIDATION AND ENHANCEMENT\nOF THE BENEFICIAL OWNERSHIP LEGISLATIVE FRAMEWORK IN THE ISLANDS;\nAND FOR INCIDENTAL AND CONNECTED PURPOSES\u2000\n\nPage 2\nIntroduced\nc\n\nPUBLISHING DETAILS\nSponsoring Ministry\/Portfolio: Ministry of Financial Services and Commerce (FSC)\n\nBeneficial Ownership Transparency Bill, 2023\nObjects and Reasons\n\nc\nIntroduced\nPage 3\n\nMemorandum of\nOBJECTS AND REASONS\nThis Bill provides for the enhancement and consolidation of the beneficial ownership\nlegislative framework in the Islands.\n\nPART 1 - PRELIMINARY\nPart 1 contains clauses 1 to 5 and provides for the preliminary provisions in the Bill. Clause\n1 provides the short title of the legislation and for its commencement.\nClause 2 provides the definition of terms used in the legislation.\nClause 3 provides for the meaning of \u201clegal person\u201d. For the purposes of the legislation,\n\u201clegal person\u201d means a company, a limited liability company, a limited liability\npartnership, a limited partnership, a foundation company, an exempted limited partnership\nor any other legal person that may be prescribed in regulations.\nClause 4 provides for the meaning of \u201cbeneficial owner\u201d.\nClause 5 provides that the Minister charged with responsibility for financial services is the\ncompetent authority for the purposes of the legislation. The Minister may act alone or\nthrough a person designated by the Minister to act for any specific purpose.\n\nPART 2 \u2013 IDENTIFICATION OF REGISTRABLE BENEFICIAL OWNERS\nPart 2 contains clauses 6 to 12 and provides for the identification of registrable beneficial\nowners. Clause 6 provides for the duty of legal persons to identify its beneficial owners. A\nlegal person to which the legislation applies shall provide the required current and valid\nparticulars of its registrable beneficial owners.\nClause 7 sets out the persons who are registrable beneficial owners in relation to a legal\nperson. The persons are \u201can individual\u201d and \u201ca reportable legal entity\u201d that the legal person\nidentifies as a beneficial owner.\nClause 8 provides for, among other things, a legal person\u2019s duty to give notice to registrable\nbeneficial owners, reportable legal entities and to any person that the legal person knows\nis a registrable beneficial owner.\nClause 9 provides for the duty of registrable beneficial owners to, among other things,\nnotify the legal person that it is a registrable beneficial owner of the said legal person.\nClause 10 provides that the competent authority may exempt an individual or a legal person\nfrom, among other things, complying with a notice, sending a notice or carrying out duties\nunder sections 9 and 14. The clause also exempts a company designated under section 80\nof the Companies Act (2023 Revision) from the provisions of the legislation.\n\nObjects and Reasons\nBeneficial Ownership Transparency Bill, 2023\n\nPage 4\nIntroduced\nc\n\nClause 11 provides for, among other things, the duty of a corporate services provider to\nreview particulars provided under section 6 and to be satisfied that the particulars are\naccurate before entering them in the register. A corporate services provider is required to\nprovide the required particulars to the competent authority at the prescribed intervals.\nClause 12 makes it a requirement that a corporate services provider gives the competent\nauthority written confirmation of a legal person\u2019s category and whether the legal person is,\namong other things, listed on the Cayman Islands Stock Exchange, licensed under a\nregulatory law or exempted by the Cabinet by virtue of this legislation.\n\nPART 3 \u2013 BENEFICIAL OWNERSHIP REGISTER\nPart 3 contains clauses 13 to 17 and provides for the establishment of the beneficial\nownership register. Clause 13 provides for the duty to establish and maintain a register that\ncontains, among other things, adequate, accurate and current beneficial ownership\ninformation in the form of required particulars of registrable beneficial owners. Where an\nordinary resident company does not engage a corporate services provider, the ordinary\nresident company shall establish and maintain its own beneficial ownership register. A\ncorporate services provider is required to deposit beneficial ownership information\nregularly in such manner and intervals as prescribed.\nClause 14 provides for the duty to keep the beneficial ownership register current. A legal\nperson shall give notice to the registrable beneficial owner if a relevant change occurs in\nrespect of a registrable beneficial owner. Where the change is confirmed, the legal person\nis required to record the details of the change and give instructions to have, among other\nthings, the details of the relevant change entered in the beneficial ownership register.  A\nrelevant change occurs where the registrable beneficial owner ceases to be so or where any\nother change occurs that renders the required particulars in the beneficial ownership\nregistered incorrect, incomplete or not current.\nClause 15 provides for the duty to notify relevant changes. A registrable beneficial owner\nis required to, among other things, notify the legal person of a relevant change, state the\ndate on which the relevant change occurred and give the legal person any information\nneeded to update the beneficial ownership register.\nClause 16 provides for the removal of an entry where an individual or a reportable legal\nentity is no longer a registrable beneficial owner of a legal person. The clause also provides\nfor the retention of the record relating to an individual or reportable legal entity for five\nyears after the individual or entity ceases to be a registrable beneficial owner.\nClause 17 provides that where the name of an individual or reportable legal entity is entered\nor omitted from a legal person\u2019s beneficial ownership register, or there is delay or default\nin making an entry in the beneficial ownership register, an aggrieved person may apply to\nthe Grand Court for rectification of the legal person\u2019s beneficial ownership register.\nThe Grand Court may refuse the application or order rectification of the register and\npayment by the legal person of any damages sustained by the aggrieved person. If the\n\nBeneficial Ownership Transparency Bill, 2023\nObjects and Reasons\n\nc\nIntroduced\nPage 5\n\nGrand Court makes an order for rectification of the register, it shall direct that notice of the\nrectification be given to the competent authority.\n\nPART 4 \u2013 RESTRICTIONS NOTICES\nPart 4 contains clauses 18 to 21 and provides for restrictions notices among other matters.\nClause 18 provides that where a corporate service provider is of the opinion that a legal\nperson has failed to comply with section 8 or 14 or has made a statement to the corporate\nservices provider that is false or misleading, the corporate services provider shall give\nnotice of this to the legal person. On receipt of the notice, the legal person is required to\ntake such steps as to justify or make the necessary correction failing which the corporate\nservices provider shall issue a restrictions notice. The legal person on whom a restrictions\nnotice is issued may apply to the Grand Court to have it set aside.\nClause 19 provides for the issue of restrictions notices by a corporate services provider. It\nprovides, among other things, that a corporate services provider that issues a restrictions\nnotice to a legal person shall withdraw the restrictions notice if the corporate services\nprovider is satisfied that there is a valid reason for the person\u2019s failure to comply, the notice\nis complied with or the rights of a third party are being unfairly affected by the restrictions\nnotice.\nClause 20 sets out the effects of issuing a restrictions notice. The effects include the voiding\nof any transfer or any agreement to transfer and the inability to exercise any rights in respect\nof the relevant interest.\nClause 21 provides for applications to the Grand Court. The Grand Court may, among other\nthings, give directions for the purposes of protecting the rights of third parties, persons with\nsecurity interests over the relevant interest, shareholders or other beneficial owners where\nit is satisfied that a restrictions notice affects those rights unfairly.\n\nPART 5 \u2013 ACCESS TO BENEFICIAL OWNERSHIP INFORMATION\nPart 5 contains clauses 22 and 23 and provides for access to beneficial ownership\ninformation. Clause 22, among other things, sets out the requirement for the competent\nauthority to maintain a search platform that enables specified persons to access information\non beneficial ownership registers maintained on behalf of legal persons. The clause also\nprovides that the competent authority may provide access to a number of entities including\nthe Royal Cayman Islands Police Service, the Financial Reporting Authority, the Cayman\nIslands Monetary Authority and the Tax Information Authority. The competent authority\nis empowered to charge such fees as may be prescribed for access to information on the\nsearch platform.\nClause 23 prohibits the disclosure of information relating to specified searches under clause\n22(2) by the competent authority or its employees, servants or agents except where the\ndisclosure is to authorized persons or for statistical or reporting purposes.\n\nObjects and Reasons\nBeneficial Ownership Transparency Bill, 2023\n\nPage 6\nIntroduced\nc\n\nPART 6 \u2013 POWERS AND ENFORCEMENT\nPart 6 contains clauses 24 \u2013 27 and provides for the powers of the competent authority and\nthe Registrar and for enforcement under the legislation. Clause 24 empowers the competent\nauthority or the Registrar to request any information from a legal person or corporate\nservices provider for the purposes of, among other things, carrying out functions under the\nlegislation, verifying the accuracy of information, assisting with the detection of crime or\nfurthering the interests of national security. A legal person or corporate services provider\nis required to comply with the notice within such period of time as may be specified in the\nrequest.\nClause 25 imposes a duty on the corporate services provider to forward any correspondence\nreceived to the respective legal person or individual to whom the correspondence is\naddressed without delay.\nClause 26 sets out the administrative penalty framework. The provision, among other\nthings, empowers the Registrar to impose administrative fines on persons who commit a\nprescribed breach of the legislation. The fine for a breach is five thousand dollars. The\nRegistrar is empowered to impose further fines of one thousand dollars for every month\nduring which the breach continues.\nClause 27 provides the criminal penalties for legal persons that contravene specified\nprovisions of the legislation. The penalties on summary conviction for contravention of\nsection 6, 8, 11, 13 or 14 range from twenty-five thousand dollars for a first offence to one\nhundred thousand dollars for subsequent offences. Where a legal person, other than a\nlimited partnership, is convicted of a third offence the court may order that the legal person\nbe struck off the register in accordance with Part VI of the Companies Act (2023 Revision),\nsection 31 of the Limited Liability Partnership Act (2023 Revision) or section 37 of the\nExempted Limited Partnership Act (2021 Revision).\nA corporate services provider who fails to issue a notice as required under section 19(1)\ncommits an offence and is liable on summary conviction to a fine of twenty-five thousand\ndollars for the first offence and for subsequent offences, to a fine of one hundred thousand\ndollars. A person who fails to comply with a notice sent in accordance with section 8 or 14\ncommits an offence and is liable on conviction on indictment to a fine of twenty-five\nthousand dollars in the case of a first offence. Where there are subsequent offences, the\noffender may be liable to a fine of fifty thousand dollars or to imprisonment for a term of\ntwo years or to both the fine and term of imprisonment.\n\nPART 7 - MISCELLANEOUS\nPart 7 contains clauses 28 \u2013 35 and provides for general matters in the legislation. Clause\n28 empowers the competent authority to issue guidance for the purpose of giving practical\nguidance including guidance regarding the interpretation of \u201cbeneficial ownership\u201d and\n\u201cultimate effective control\u201d and on the enforcement of administrative fines under the\nlegislation.\n\nBeneficial Ownership Transparency Bill, 2023\nObjects and Reasons\n\nc\nIntroduced\nPage 7\n\nClause 29 empowers the Registrar to make rules providing for aggravating and mitigating\nfactors relating to administrative fines and the publication of details related to enforcement\nactions imposed in accordance with the legislation.\nClause 30 empowers the Cabinet to make regulations for the effective implementation of\nthe legislation. The clause also, among other things, empowers the Cabinet to make\nregulations regarding the interpretation of specified terms.\nClause 31 provides that the Cabinet may by order amend the definitions or interpretation\nof terms set out in section 2 of the legislation.\nClause 32 provides for the protection of civil servants from liability in the discharge of\ntheir functions except where it is shown that the act or omission was in bad faith.\nClause 33 provides that in the event of an inconsistency between the Act and any related\nlegislation, the Act prevails to the extent of the inconsistency. The clause sets out the\nrelated legislation which are the Companies Act (2023 Revision), the Limited Liability\nCompanies Act (2023 Revision), the Partnership Act (2013 Revision), the Limited Liability\nPartnership Act (2023 Revision) and the Exempted Limited Partnership Act (2021\nRevision).\nClause 34 provides that the competent authority shall execute searches of a beneficial\nownership register by means of the search platform where there are certified requests in\nrelation to a jurisdiction listed in the Schedule.  A jurisdiction listed in the Schedule is one\nwhich has entered into an agreement with the Government regarding the sharing of\nbeneficial ownership information.\nClause 35 sets out savings and transitional provisions.\nThe Schedule provides for the countries or territories that have entered into agreements\nwith the Government for the sharing of beneficial ownership information.\n\nBeneficial Ownership Transparency Bill, 2023\nArrangement of Clauses\n\nc\nIntroduced\nPage 9\n\nCAYMAN ISLANDS\n\nBENEFICIAL OWNERSHIP TRANSPARENCY\nBILL, 2023\n\nArrangement of Clauses\nClause\nPage\nPART 1 - PRELIMINARY\n1.\nShort title and commencement ................................................................................................ 11\n2.\nInterpretation ........................................................................................................................... 11\n3.\nMeaning of legal person........................................................................................................... 14\n4.\nMeaning of beneficial owner .................................................................................................... 14\n5.\nCompetent authority ................................................................................................................ 15\nPART 2 - IDENTIFICATION OF REGISTRABLE BENEFICIAL\nOWNERS\n6.\nDuty of legal persons to identify beneficial owners, etc. ........................................................... 15\n7.\nRegistrable beneficial owner .................................................................................................... 16\n8.\nDuty to give notice to registrable beneficial owners .................................................................. 16\n9.\nDuty of registrable beneficial owners to supply information ...................................................... 17\n10.\nExemption ............................................................................................................................... 18\n11.\nCorporate services providers to review particulars ................................................................... 18\n12.\nRequired particulars and written confirmation required for categories of legal persons ............. 19\nPART 3 - BENEFICIAL OWNERSHIP REGISTER\n13.\nDuty to establish and maintain register .................................................................................... 21\n14.\nDuty to keep register current .................................................................................................... 22\n15.\nDuty to notify relevant changes ................................................................................................ 23\n\nArrangement of Clauses\nBeneficial Ownership Transparency Bill, 2023\n\nPage 10\nIntroduced\nc\n\n16.\nRetention on the register.......................................................................................................... 23\n17.\nPower of the Grand Court to rectify beneficial ownership register ............................................ 24\nPART 4 - RESTRICTIONS NOTICE\n18.\nConsequences of failing to disclose beneficial ownership ........................................................ 24\n19.\nIssue of restrictions notice by corporate services provider ....................................................... 25\n20.\nEffect of restrictions notice ....................................................................................................... 26\n21.\nApplications to the Grand Court ............................................................................................... 26\nPART 5 - ACCESS TO BENEFICIAL OWNERSHIP\nINFORMATION\n22.\nAccess to beneficial ownership information .............................................................................. 28\n23.\nNo disclosure of information .................................................................................................... 30\nPART 6 - POWERS AND ENFORCEMENT\n24.\nCompetent authority or the Registrar may request information ................................................. 30\n25.\nDuty of the corporate services provider to forward correspondence ......................................... 31\n26.\nAdministrative fines.................................................................................................................. 31\n27.\nCriminal penalties .................................................................................................................... 32\nPART 7 - MISCELLANEOUS\n28.\nCompetent authority may issue guidance ................................................................................ 34\n29.\nRegistrar's rule-making power ................................................................................................. 35\n30.\nRegulations ............................................................................................................................. 35\n31.\nAmendments by order ............................................................................................................. 36\n32.\nProtection of civil servants from liability .................................................................................... 36\n33.\nConflict .................................................................................................................................... 37\n34.\nAgreements regarding sharing of information........................................................................... 37\n35.\nSavings and transitional ........................................................................................................... 37\nSCHEDULE\n39\n(section 34) ....................................................................................................................................... 39\nCOUNTRIES OR TERRITORIES THAT HAVE ENTERED INTO AGREEMENTS WITH THE\nGOVERNMENT FOR THE SHARING OF BENEFICIAL OWNERSHIP INFORMATION\n39\n\nBeneficial Ownership Transparency Bill, 2023\nClause 1\n\nc\nIntroduced\nPage 11\n\nCAYMAN ISLANDS\n\nBENEFICIAL OWNERSHIP TRANSPARENCY\nBILL, 2023\n\nA BILL FOR AN ACT TO PROVIDE FOR THE CONSOLIDATION AND ENHANCEMENT\nOF THE BENEFICIAL OWNERSHIP LEGISLATIVE FRAMEWORK IN THE ISLANDS;\nAND FOR INCIDENTAL AND CONNECTED PURPOSES\nENACTED by the Legislature of the Cayman Islands.\nPART 1 - PRELIMINARY\n1.\nShort title and commencement\n1.\n(1) This Act may be cited as the Beneficial Ownership Transparency Act, 2023.\n(2) This Act comes into force on such date as may be appointed by Order made by\nCabinet and different dates may be appointed for different provisions of this Act\nand in relation to different matters.\n2.\nInterpretation\n2.\n(1) In this Act \u2014\n\u201capproved stock exchange\u201d means a stock exchange listed in Schedule 4 of the\nCompanies Act (2023 Revision);\n\u201cbeneficial owner\u201d in relation to a legal person has the meaning set out under\nsection 4;\n\nClause 2\nBeneficial Ownership Transparency Bill, 2023\n\nPage 12\n  Introduced\nc\n\n\u201cbeneficial ownership register\u201d means the register established and maintained\npursuant to section 13;\n\u201ccompany\u201d means a company that is incorporated, formed or registered\n(including by way of continuation) in the Islands under the laws of the Islands\nexcept a foreign company;\n\u201ccompetent authority\u201d has the meaning given by section 5;\n\u201ccorporate services provider\u201d means \u2014\n(a)\na person that provides registered office services to a legal person under the\nCompanies Management Act (2021 Revision), the Banks and Trust\nCompanies Act (2021 Revision), the Insurance Act, 2010 or any other\nregulatory law pursuant to which the person is licensed or permitted to\nprovide registered office services; or\n(b) in the case of an ordinary resident company which has not engaged a\nperson described in paragraph (a), the ordinary resident company itself;\n\u201cexempted limited partnership\u201d means an exempted limited partnership\nregistered under section 9 of the Exempted Limited Partnership Act (2021\nRevision);\n\u201cforeign company\u201d means a foreign company under Part IX of the Companies\nAct (2023 Revision);\n\u201cforeign limited partnership\u201d has the meaning assigned under section 42(1) of\nthe Exempted Limited Partnership Act (2021 Revision);\n\u201cfoundation company\u201d means a company declared as a foundation company\nunder section 5 of the Foundation Companies Act, 2017;\n\u201cgovernment entity\u201d means the government of a jurisdiction, any political\nsubdivision of a jurisdiction, a ministry, department, statutory authority or any\nwholly owned agency of a jurisdiction;\n\u201cindividual\u201d means a natural person;\n\u201clegal person\u201d has the meaning given by section 3;\n\u201clicensed financial institution\u201d means a person that is licensed under a\nregulatory law;\n\u201clicensed fund administrator\u201d means a person that holds a Mutual Fund\nAdministrators Licence under the Mutual Funds Act (2021 Revision);\n\u201climited liability company\u201d means a limited liability company registered under\nthe Limited Liability Companies Act (2023 Revision) except a foreign entity as\ndefined in section 2 of that Act;\n\u201climited liability partnership\u201d means a limited liability partnership registered\nunder the Limited Liability Partnership Act (2023 Revision) except a foreign\nlimited liability partnership as defined in section 39(21) of that Act;\n\nBeneficial Ownership Transparency Bill, 2023\nClause 2\n\nc\nIntroduced\nPage 13\n\n\u201climited partnership\u201d means a limited partnership registered under the\nPartnership Act (2013 Revision);\n\u201cMinister\u201d means the Minister responsible for financial services;\n\u201cordinary resident company\u201d means a company which carries on business in\nthe Islands in accordance with section 2(2) of the Local Companies (Control)\nAct (2019 Revision);\n\u201cpartnership interest\u201d means the interest of a partner in a limited partnership,\nexempted limited partnership or limited liability partnership in respect of profit,\ncapital and voting or other rights, benefits or obligations to which the partner is\nentitled or subject pursuant to the partnership agreement;\n\u201cregistered shareholder\u201d means a person who is named as a shareholder of a\ncompany or a member of a company on the register of members of the company;\n\u201cregistrable beneficial owner\u201d has the meaning set out in section 7;\n\u201cRegistrar\u201d, in relation to \u2014\n(a)\na company, means the person appointed as such under section 3(1) of the\nCompanies Act (2023 Revision);\n(b) an exempted limited partnership, means the person described in section 8\nof the Exempted Limited Partnership Act (2021 Revision);\n(c)\na limited liability company, means the person described in section 4 of the\nLimited Liability Companies Act (2023 Revision);\n(d) a limited liability partnership, means the person described in section 44(1)\nof the Limited Liability Partnership Act (2023 Revision); and\n(e)\na limited partnership, means the person described in section 48 of the\nPartnership Act (2013 Revision);\n\u201cregulatory law\u201d means a law defined as such in section 2 of the Monetary\nAuthority Act (2020 Revision), other than the Directors Registration and\nLicensing Act, 2014;\n\u201crelevant interest\u201d means an interest that a person holds in a legal person\nconsisting of \u2014\n(a)\na partnership interest or shares or voting rights in the legal person; or\n(b) ultimate effective control over the management of the legal person;\n\u201creportable legal entity\u201d, in relation to a legal person, means another legal\nperson, other than a foreign company, foreign entity or a foreign limited\npartnership, that if it were an individual would be a beneficial owner of the first\nmentioned legal person;\n\u201crequired particulars\u201d has the meaning set out under section 12;\n\u201crestrictions notice\u201d means a notice issued under section 19;\n\u201cspecified conditions\u201d means the conditions specified in section 4(1); and\n\nClause 3\nBeneficial Ownership Transparency Bill, 2023\n\nPage 14\n  Introduced\nc\n\n\u201cultimate effective control\u201d includes ownership or control exercised through a\nchain of ownership or by means of control other than direct control.\n(2) Notwithstanding the provisions of any other law, for the purposes of this Act,\nthe following persons are considered individuals \u2014\n(a)\na corporation sole;\n(b) a government or government department of a country or territory or a part\nof a country or territory;\n(c)\nan international organization whose members include two or more\ncountries or territories (or their governments); and\n(d) a public authority.\n3.\nMeaning of legal person\n3.\nA legal person for the purposes of this Act means \u2014\n(a)\na company;\n(b) a limited liability company;\n(c)\na limited liability partnership;\n(d) a limited partnership;\n(e)\na foundation company;\n(f)\nan exempted limited partnership; or\n(g) any other legal person that may be prescribed in regulations.\n4.\nMeaning of beneficial owner\n4.\n(1) In this Act, \u201cbeneficial owner\u201d in relation to a legal person means an individual\nwho meets any of the following specified conditions \u2014\n(a)\nthe individual ultimately owns or controls, whether through direct or\nindirect ownership or control, twenty-five per cent or more of the shares,\nvoting rights or partnership interests in the legal person;\n(b) the individual otherwise exercises ultimate effective control over the\nmanagement of the legal person; or\n(c)\nthe individual is identified as exercising control of the legal person through\nother means, including as a senior managing official, where there is no\nindividual who exerts control pursuant to paragraph (a) or (b).\n(2) An individual that meets one or more of the specified conditions under\nsubsection (1) is considered a beneficial owner except where that individual\noperates solely in the capacity of a professional advisor or professional manager.\n(3) Where, in relation to a legal person \u2014\n(a)\nno individual meets any of the specified conditions under subsection (1);\nand\n\nBeneficial Ownership Transparency Bill, 2023\nClause 5\n\nc\nIntroduced\nPage 15\n\n(b) the trustees of a trust that is the beneficial owner of the legal person meet\none of the specified conditions under subsection (1) in their capacities as\ntrustees of a trust,\nthe trustees of the trust are the beneficial owners of the legal person if they have\nultimate effective control over the activities of the trust other than solely in the\ncapacity of a professional advisor or professional manager.\n(4) For the purposes of this section \u2014\n\u201cprofessional advisor\u201d includes \u2014\n(a)\na lawyer;\n(b) an accountant; or\n(c)\na financial advisor\nwho provides advice or direction in a professional capacity;\n\u201cprofessional manager\u201d includes \u2014\n(a)\na liquidator;\n(b) a receiver; or\n(c)\na restructuring officer\nwho exercises a statutory function; and\n\u201csenior managing official\u201d includes a director or a chief executive officer of\nthe legal person.\n5.\nCompetent authority\n5.\nThe Minister is the competent authority for the purposes of this Act and shall carry\nout the functions of the competent authority under this Act whether acting alone or\nthrough a person designated by the Minister to act for any specific purpose.\nPART 2 - IDENTIFICATION OF REGISTRABLE BENEFICIAL\nOWNERS\n6.\nDuty of legal persons to identify beneficial owners, etc.\n6.\n(1) A legal person that is a category of legal person under section 12(1)(a), (b), (c)\nor (d) shall provide to its corporate services provider written confirmation of its\ncategory and the required particulars.\n(2) A legal person under section 12(1)(e) shall identify \u2014\n(a)\nevery individual that is a beneficial owner of the legal person; and\n(b) every reportable legal entity.\n(3) A legal person under section 12(1)(e) shall provide in writing to its corporate\nservices provider the required current and valid required particulars of\n\nClause 7\nBeneficial Ownership Transparency Bill, 2023\n\nPage 16\n  Introduced\nc\n\nregistrable beneficial owners in respect of that legal person as soon as those\nrequired particulars have been confirmed.\n(4) For the purposes of this section, the required particulars are considered to have\nbeen confirmed if \u2014\n(a)\nthe individual, the reportable legal entity or legal person to whom the\nrequired particulars relate supplied or confirmed the required particulars;\n(b) another person supplied or confirmed the required particulars with the\nconsent of the individual, the reportable legal entity or legal person to\nwhom the required particulars relate; or\n(c)\nthe required particulars were included in a statement of initial significant\ncontrol delivered to the Registrar by subscribers or partners wishing to\nform a legal person.\n7.\nRegistrable beneficial owner\n7.\n(1) The following are registrable beneficial owners in relation to a legal person \u2014\n(a)\nan individual that the legal person identifies pursuant to section 6(2)(a) as\na beneficial owner of the legal person; or\n(b) a reportable legal entity identified pursuant to section 6(2)(b) \u2014\n(i)\nthat directly holds a relevant interest in the legal person or meets one\nor more of the specified conditions; or\n(ii) through which any beneficial owner or reportable legal entity\nindirectly holds a relevant interest in the legal person.\n(2) The question as to whether a person is a registrable beneficial owner shall be\ndetermined in such manner as may be prescribed.\n8.\nDuty to give notice to registrable beneficial owners\n8.\n(1) Subject to subsection (5), a legal person shall give notice in writing to beneficial\nowners and reportable legal entities identified by the legal person under section\n6 and to any person that it knows, or has reasonable cause to believe, is a\nregistrable beneficial owner in relation to it.\n(2) The notice under subsection (1) shall require the persons to whom it is\naddressed, no later than thirty days after the receipt of the notice \u2014\n(a)\nto state whether or not they are registrable beneficial owners within the\nmeaning of this Act; and\n(b) if the person is a registrable beneficial owner, to confirm or correct any\nrequired particulars that are included in the notice and to supply any\nrequired particulars that are missing from the notice.\n(3) A legal person shall also give notice in writing to a person holding a relevant\ninterest in \u2014\n\nBeneficial Ownership Transparency Bill, 2023\nClause 9\n\nc\nIntroduced\nPage 17\n\n(a)\nthe legal person; or\n(b) another legal person that the first mentioned legal person knows or has\nreasonable cause to believe is a reportable legal entity in relation to that\nother legal person.\n(4) A notice under subsection (3) shall require the person to whom it is addressed \u2014\n(a)\nto state whether or not the person knows the identity of a registrable\nbeneficial owner or any person likely to have that knowledge; and\n(b) if the person is required to provide a statement under paragraph (a), to\nsupply, at the expense of the legal person, any required particulars in\nrespect of such registrable beneficial owners that are within the\naddressee\u2019s knowledge no later than thirty days after receipt of the notice.\n(5) A legal person is not required to give a notice to an individual or a reportable\nlegal entity if \u2014\n(a)\nthe legal person knows that the individual or reportable legal entity is not\na registrable beneficial owner; or\n(b) the legal person has already been informed of the individual\u2019s or reportable\nlegal entity\u2019s status as a registrable beneficial owner in relation to it, and\nhas received all the required particulars.\n(6) A person to which a notice under this section is given is not required by that\nnotice to disclose any information \u2014\n(a)\nin respect of which legal professional privilege applies; or\n(b) that the person is prohibited by any law applicable in the Islands from\ndisclosing.\n9.\nDuty of registrable beneficial owners to supply information\n9.\n(1) A registrable beneficial owner shall \u2014\n(a) notify the legal person that the said registrable beneficial owner is a\nregistrable beneficial owner in relation to the legal person;\n(b) state the date, to the best of the person\u2019s knowledge, on which the\nperson became a registrable beneficial owner in relation to the legal\nperson; and\n(c) give the legal person the required particulars.\n(2) This section applies to a person if \u2014\n(a)\nthe person is a registrable beneficial owner in relation to a legal person;\n(b) the person has no reason to believe that the said person\u2019s required\nparticulars are stated in the legal person\u2019s beneficial ownership register;\nand\n(c)\nthe person has not received a notice from the legal person under section 8.\n\nClause 10\nBeneficial Ownership Transparency Bill, 2023\n\nPage 18\n  Introduced\nc\n\n(3) The duty under subsection (1) shall be complied with by the end of the period\nof thirty days beginning with the day on which all of the conditions in\nsubsections (2)(a) through (2)(c) are first met with respect to the person.\n10.\nExemption\n10. (1) The competent authority, if satisfied, having regard to any undertaking given by\nan individual or a legal person, that there are special reasons for an exemption\nfrom compliance with a notice or duty under this Act, may exempt \u2014\n(a)\nthe individual or legal person from complying with a notice issued under\nsection 8;\n(b) the legal person from taking steps to identify the individual or legal person\nor give notice under section 8 to, or with respect to, either the individual\nor legal person;\n(c)\nany person from sending a notice or giving information under section 8;\n(d) the individual or legal person from the duties imposed by sections 9 and\n14; or\n(e)\nthe individual or legal person from being entered on a legal person\u2019s\nbeneficial ownership register as a registrable beneficial owner in relation\nto any legal person.\n(2) The competent authority shall exercise the exemption powers in subsection (1)\nin accordance with the criteria as may be prescribed.\n(3) A company designated as a company to which section 80 of the Companies Act\n(2023 Revision) applies is exempt from the provisions of this Act.\n11.\nCorporate services providers to review particulars\n11. (1) A corporate services provider shall \u2014\n(a)\nreview the required particulars provided under section 6(1) by the legal\nperson; and\n(b) take reasonable measures to verify the identity of the beneficial owner or\nreportable legal entity, using information obtained from reliable sources,\nso as to be satisfied that the required particulars are accurate and current before\nentering them in the legal person\u2019s beneficial ownership register in the\nprescribed form and manner.\n(2) A corporate services provider shall provide the required particulars referred to\nin subsection (1) to the competent authority at such intervals as may be\nprescribed in accordance with section 13(3).\n(3) There is no requirement to enter required particulars concerning an individual\nor reportable legal entity that is not a registrable beneficial owner.\n\nBeneficial Ownership Transparency Bill, 2023\nClause 12\n\nc\nIntroduced\nPage 19\n\n(4) For the purposes of this section, reasonable measures are considered to have\nbeen undertaken to verify the required particulars if the required particulars have\nbeen validated against data from reliable sources.\n(5) For the purposes of this section, \u201creliable sources\u201d means independent source\ndocuments or information issued by a government entity, a licensed financial\ninstitution or similar originator or issuer of information that is well known and\nconsidered reputable.\n12.\nRequired particulars and written confirmation required for categories of legal\npersons\n12. (1) A corporate services provider shall provide the competent authority with written\nconfirmation as to the legal person\u2019s category stating whether the legal person\nis \u2014\n(a)\nlisted, or is a subsidiary of a listed entity, on the Cayman Islands Stock\nExchange or an approved stock exchange;\n(b) licenced under a regulatory law;\n(c)\na fund registered under the Private Funds Act (2021 Revision) or the\nMutual Funds Act (2021 Revision);\n(d) exempted by the Cabinet by virtue of this Act; or\n(e)\nanother legal person not falling within, or not opting to fall within,\nparagraphs (a) through (d).\n(2) For the purposes of subsection (1)(a), a legal person is a subsidiary of a listed\nentity if \u2014\n(a)\nthe listed entity holds seventy-five per cent or more of the shares or voting\nrights in the subsidiary legal person;\n(b) the listed entity exercises ultimate effective control over the subsidiary\nlegal person; or\n(c)\nthe listed entity controls the subsidiary legal person by other means.\n(3) The required particulars for the category of legal person shall be provided by\nway of the search platform maintained pursuant to section 22 in the form, in the\nmanner and at such intervals as are required of corporate services providers in\naccordance with section 13(3).\n(4) The written confirmation of the category of legal person shall include the\nfollowing information \u2014\n(a)\nfor particulars under subsection (1)(a), the name and jurisdiction of the\nstock exchange;\n(b) for particulars under subsection (1)(b), the regulatory law under which the\nlegal person is licenced;\n\nClause 12\nBeneficial Ownership Transparency Bill, 2023\n\nPage 20\n  Introduced\nc\n\n(c)\nfor particulars under subsection (1)(c), the contact details of a licensed\nfund administrator or another contact person licensed or registered under\na regulatory law for providing beneficial ownership information located\nwithin the Islands;\n(d) for particulars under subsection (1)(d), such information as may be\nprescribed;\n(e)\nfor persons under subsection (1)(e), where the registrable beneficial owner\nis an individual, the required particulars set out in subsection (5) or (6) or,\nwhere the registrable beneficial owner is a reportable legal entity, the\nrequired particulars set out in subsection (7).\n(5) The required particulars of an individual, except an individual under section\n2(2), are \u2014\n(a)\nfull legal name;\n(b) residential address;\n(c)\nan address for service of notices under this Act;\n(d) date of birth;\n(e)\nnationality;\n(f)\ninformation from the individual\u2019s unexpired and valid passport, driver\u2019s\nlicence or other government-issued document that identifies the individual\nincluding \u2014\n(i)\nidentification number;\n(ii) country of issue; and\n(iii) date of issue and of expiry;\n(g) nature in which the individual owns or exercises control of the legal\nperson; and\n(h) the date on which the individual became or ceased to be a registrable\nbeneficial owner in relation to the legal person in question.\n(6) The required particulars of an individual under section 2(2) are \u2014\n(a)\nname;\n(b) principal office;\n(c)\nthe legal form of the individual and the law by which the individual is\ngoverned; and\n(d) the date on which the individual became or ceased to be registrable\nbeneficial owner in relation to the legal person in question.\n(7) The required particulars of a reportable legal entity are \u2014\n(a)\ncorporate or firm name;\n(b) registered or principal office;\n\nBeneficial Ownership Transparency Bill, 2023\nClause 13\n\nc\nIntroduced\nPage 21\n\n(c)\nthe legal form of the entity and the law by which it is governed;\n(d) the nature of the reportable legal entity\u2019s ownership or its exercise of\ncontrol of the legal person;\n(e)\nthe register in which it is entered and its registration number in that\nregister; and\n(f)\nthe date on which it became or ceased to be a registrable beneficial owner\nin relation to the legal person in question.\n(8) A licensed fund administrator or the contact person under subsection (4)(c) shall\nprovide the competent authority with the requested beneficial ownership\ninformation within twenty-four hours of a request being made or at any other\ntime as the competent authority may reasonably stipulate.\n(9) Where a legal person is being wound up, the corporate services provider or the\nliquidator shall provide the competent authority with the details of the\nprovisional liquidator, liquidator or joint liquidator along with the details of the\nregistrable beneficial owners as at the date of the appointment of the provisional\nliquidator, liquidator or joint liquidator as soon as may be reasonably\npracticable.\n(10) Where no registrable beneficial owners are identified, written confirmation of a\nnil return shall be provided to the competent authority.\nPART 3 - BENEFICIAL OWNERSHIP REGISTER\n13.\nDuty to establish and maintain register\n13. (1) A corporate services provider shall establish and maintain a register containing\nadequate, accurate and current beneficial ownership information in relation to\nthe legal person in the form of required particulars of registrable beneficial\nowners.\n(2) Where an ordinary resident company does not engage a corporate services\nprovider for the provision of registered office services, the ordinary resident\ncompany shall establish and maintain its own beneficial ownership register.\n(3) The corporate services provider shall regularly deposit beneficial ownership\ninformation received from the legal person that has engaged the corporate\nservices provider in the form, in the manner and at such intervals as may be\nprescribed in regulations.\n(4) For the purposes of this section \u2014\n(a)\n\u201cadequate beneficial ownership information\u201d means information that is\nsufficient to identify an individual who is a beneficial owner and the means\nand the mechanisms through which the individual exercises beneficial\nownership or control;\n\nClause 14\nBeneficial Ownership Transparency Bill, 2023\n\nPage 22\n  Introduced\nc\n\n(b) \u201caccurate beneficial ownership information\u201d means information which\nhas been verified to confirm its accuracy in keeping with section 11; and\n(c)\n\u201ccurrent\nbeneficial\nownership\ninformation\u201d\nmeans\nbeneficial\nownership information which \u2014\n(i)\nis as current as possible with the corporate services provider\ndepositing, in accordance with the intervals prescribed by subsection\n(3); and\n(ii) is received from the legal person no later than thirty days after the\nlegal person becomes aware of the change occurring in accordance\nwith section 14(1).\n14.\nDuty to keep register current\n14. (1) If a relevant change occurs with respect to a registrable beneficial owner whose\nrequired particulars are stated in its beneficial ownership register, the legal\nperson shall give notice to the registrable beneficial owner, as soon as\nreasonably practicable, (that being no later than thirty days after it learns of the\nchange or had reasonable cause to believe that the change had occurred),\nrequesting confirmation of the change.\n(2) If the registrable beneficial owner to which a notice is sent under subsection (1)\nconfirms the relevant change, the legal person shall record the details of the\nchange and instruct the corporate services provider to enter in the legal person\u2019s\nbeneficial ownership register in the prescribed form and manner the\nfollowing \u2014\n(a)\nthe details of the relevant change confirmed by the legal person;\n(b) the date on which the change was made to the beneficial ownership\nregister; and\n(c)\nwhether there are further alterations to be made.\n(3) For the purposes of sections 14 and 15, a relevant change occurs if \u2014\n(a)\nthe registrable beneficial owner ceases to be a registrable beneficial owner\nin relation to the legal person; or\n(b) any other change occurs as a result of which the required particulars stated\nrespecting the registrable beneficial owner in the legal person\u2019s beneficial\nownership register are incorrect, incomplete or not current.\n(4) A relevant change with respect to a registrable beneficial owner is considered to\nhave been confirmed if \u2014\n(a)\nthe legal person has given notice to the registrable beneficial owner\nrequesting confirmation, of the relevant change, the date of the change and\nthe relevant particulars included in the notice within the period of thirty\ndays from the date of the notice; and\n\nBeneficial Ownership Transparency Bill, 2023\nClause 15\n\nc\nIntroduced\nPage 23\n\n(b) the details, date and particulars of the change have been supplied or\nconfirmed to the legal person by the registrable beneficial owner, or by\nanother person with the knowledge of the registrable beneficial owner.\n15.\nDuty to notify relevant changes\n15. (1) A registrable beneficial owner to which this section applies shall \u2014\n(a)\nnotify the legal person of a relevant change;\n(b) state the date on which the relevant change occurred; and\n(c)\ngive the legal person any information needed to update the legal\nperson\u2019s beneficial ownership register.\n(2) This section applies to persons where \u2014\n(a)\nthe person has stated that it is a registrable beneficial owner, within the\nmeaning of this Act, in response to a notice received under section 8; or\n(b) the registrable beneficial owner has reason to believe that its required\nparticulars are stated in a legal person\u2019s beneficial ownership register,\nand any of the following events occur \u2014\n(i)\na relevant change, within the meaning of section 14(3), occurs with\nrespect to the registrable beneficial owner;\n(ii) the registrable beneficial owner knows of the change;\n(iii) the registrable beneficial owner has no knowledge that the beneficial\nownership register has been altered to reflect the change; or\n(iv) the registrable beneficial owner has not received a notice from the\nlegal person under section 14 by the end of the period of thirty days\nbeginning with the day on which the change occurred.\n(3) The duty under subsection (1) shall be complied with before the end of the\nperiod of thirty days beginning with the day on which the person discovered the\nrelevant change.\n16.\nRetention on the register\n16. Where an individual or a reportable legal entity is no longer a registrable beneficial\nowner of a legal person, the corporate services provider engaged by the legal person\nshall \u2014\n(a)\nremove the entry relating to that individual or reportable legal entity from\nthe legal person\u2019s beneficial ownership register: and\n(b) retain the record relating to that individual or reportable legal entity for\nfive years from the date on which the individual or reportable legal entity\nceased to be a registrable beneficial owner in relation to the legal person.\n\nClause 17\nBeneficial Ownership Transparency Bill, 2023\n\nPage 24\n  Introduced\nc\n\n17.\nPower of the Grand Court to rectify beneficial ownership register\n17. (1) If \u2014\n(a)\nthe name of any individual or reportable legal entity is, without sufficient\ncause, entered in or omitted from a legal person\u2019s beneficial ownership\nregister as a registrable beneficial owner; or\n(b) default is made, or unnecessary delay takes place, in entering in a legal\nperson\u2019s beneficial ownership register the fact that an individual or\nreportable legal entity has ceased to be a registrable beneficial owner,\nthe person aggrieved, may apply to the Grand Court for rectification of the legal\nperson\u2019s beneficial ownership register.\n(2) The Grand Court may \u2014\n(a)\nrefuse the application under subsection (1); or\n(b) order rectification of the beneficial ownership register and payment by the\nlegal person of any damages sustained by any person aggrieved.\n(3) On an application under this section, the Grand Court may decide any\nquestion \u2014\n(a)\nas to whether the name of any person who is a party to the application\nshould or should not be entered in or omitted from the legal person\u2019s\nbeneficial ownership register; and\n(b) that is necessary or expedient to be decided for rectification of the legal\nperson\u2019s beneficial ownership register.\n(4) If the Grand Court makes an order for rectification of a legal person\u2019s beneficial\nownership register against the legal person, it shall direct that notice of the\nrectification be given to the competent authority.\nPART 4 - RESTRICTIONS NOTICE\n18.\nConsequences of failing to disclose beneficial ownership\n18. (1) If a legal person\u2019s corporate services provider is of the opinion that the legal\nperson \u2014\n(a)\nhas failed to comply with section 8 or 14 without reasonable excuse; or\n(b) has made a statement regarding matters relevant to this Act to the corporate\nservices provider that is false or misleading,\nthe corporate services provider shall give notice of this to the legal person.\n(2) On receipt of a notice under subsection (1), the legal person shall provide the\ncorporate services provider with \u2014\n\nBeneficial Ownership Transparency Bill, 2023\nClause 19\n\nc\nIntroduced\nPage 25\n\n(a)\nthe missing required particulars under section 12 pertaining to registrable\nbeneficial owners; and\n(b) a justification and a correction respecting any statement identified as being\nfalse or misleading in the notice.\n(3) If the legal person fails to provide the missing particulars referred to in\nsubsection (2)(a) by the end of the period of thirty days beginning with the date\nof receipt of the notice, the corporate services provider shall \u2014\n(a)\nsubject to section 19, issue a restrictions notice to the legal person whose\nparticulars are missing with regard to the shares or other relevant interest;\nand\n(b) send a copy of the restrictions notice to the competent authority within\nfourteen days of issuing it.\n19.\nIssue of restrictions notice by corporate services provider\n19. (1) The corporate services provider of a legal person to which this Act applies shall\nsend a restrictions notice to the legal person concerning a relevant interest in\nthat legal person if, by the end of the period of thirty days beginning with the\ndate of receipt of the notice \u2014\n(a)\na notice under section 8 or 14 was served on the legal person;\n(b) the legal person has not \u2014\n(i)\nreceived compliance with the notice; or\n(ii) provided the corporate services provider with a valid reason\nsufficient to justify the legal person\u2019s failure to comply with the\nnotice; or\n(c)\nwhere the relevant interest is subject to a pre-existing security interest\ngranted to a third party who is not affiliated with the legal person, the\nrestrictions notice shall not take effect.\n(2) In deciding whether to send a restrictions notice, the corporate services provider\nshall have regard to the effect of the notice on the rights of persons in respect of\nthe relevant interest, including third parties, persons with a security interest over\nthe relevant interest, registered shareholders and other beneficial owners.\n(3) A corporate services provider that issues a restrictions notice to a legal person\nshall, by notice, withdraw the restrictions notice if \u2014\n(a)\nit is satisfied that there is a valid reason to justify the person\u2019s failure to\ncomply with the notice served under section 8 or 14;\n(b) the notice served under section 8 or 14 is complied with; or\n(c)\nthe corporate services provider discovers that the rights of a third party in\nrespect of the relevant interest are being unfairly affected by the\nrestrictions notice.\n\nClause 20\nBeneficial Ownership Transparency Bill, 2023\n\nPage 26\n  Introduced\nc\n\n(4) A legal person to whom a restrictions notice is issued under this section may\napply to the Grand Court to set aside any restriction imposed by the notice.\n20.\nEffect of restrictions notice\n20. (1) The effect of a restrictions notice with respect to a relevant interest is as\nfollows \u2014\n(a)\nany transfer or agreement to transfer the relevant interest is void;\n(b) no rights are exercisable in respect of the relevant interest;\n(c)\nno relevant interests may be issued in respect of the relevant interest or in\npursuance of an offer made to the person holding the relevant interest;\n(d)  other than in a liquidation, no payment may be made of sums due from\nthe legal person in respect of the relevant interest, whether in respect of\ncapital or otherwise; and\n(e)\nother than in a liquidation, an agreement to transfer any of the following\nassociated rights in relation to the relevant interest is void \u2014\n(i)\na right to be issued with any shares issued in respect of the relevant\ninterest; or\n(ii) a right to receive payment of any sums due from the legal person in\nrespect of the relevant interest.\n(2) This section does not apply to an agreement to transfer a relevant interest\nreferred to in subsection (1)(a) or to an associated right referred to in subsection\n(1)(e), if the agreement results from the making of an order referred to in section\n21(4)(b).\n21.\nApplications to the Grand Court\n21. (1) The Grand Court may, on an application by any person aggrieved by a decision\nof a corporate services provider under section 19, make an order giving\ndirections for the purpose of protecting the rights of third parties, persons with\na security interest over the relevant interest, shareholders or other beneficial\nowners in respect of a relevant interest, if the Court is satisfied that a restrictions\nnotice unfairly affects those rights.\n(2) An order under subsection (1) \u2014\n(a)\nshall direct, subject to such terms as the Court thinks fit, that certain acts\ndo not constitute a breach of the restrictions placed on the relevant interest\nby the restrictions notice;\n(b) shall specify the acts that do not constitute a breach of the restrictions; and\n(c)\nmay confine the direction to cases where those acts are done by persons,\nor for purposes, described in the order.\n(3) A corporate services provider that issues a restrictions notice, or any person\naggrieved by such notice, may apply to the Grand Court for an order directing\n\nBeneficial Ownership Transparency Bill, 2023\nClause 21\n\nc\nIntroduced\nPage 27\n\nthat the relevant interest cease to be subject to restrictions contained in the\nrestrictions notice.\n(4) The Grand Court may only make an order under subsection (3) if \u2014\n(a)\nthe Court is satisfied that the information required by the notice served\nunder section 8 or 14 has been disclosed to the legal person and no unfair\nadvantage has accrued to any person as a result of the earlier failure to\nmake that disclosure; or\n(b) the relevant interest is to be transferred for valuable consideration and the\nCourt approves the transfer.\n(5) An order made by virtue of subsection (4)(b) may continue, in whole or in part,\nthe restrictions referred to in sections 20(1)(c) and (d) insofar as they relate to a\nright acquired or offer made before the transfer.\n(6) Where any restrictions continue in force by virtue of subsection (5) \u2014\n(a)\nan application may be made under this section for an order directing that\nthe relevant interest cease to be subject to those restrictions; and\n(b) subsection (4) does not apply in relation to the making of such an order.\n(7) On the application by a corporate services provider that issues a restrictions\nnotice, the Grand Court may order that the relevant interest that is subject to\nrestrictions be sold on the condition that the Court approves the sale.\n(8) A Court that makes an order under subsection (7) may make such further order\nrelating to the sale or transfer of the interest as it thinks fit on application by \u2014\n(a)\nthe corporate services provider that issued the restrictions notice;\n(b) the person appointed in pursuance of the order to effect the sale; or\n(c)\nany person with an interest in the relevant interest.\n(9) On making an order under subsection (7) or (8), the Court may order that the\napplicant\u2019s costs be paid from the proceeds of sale.\n(10) If a relevant interest is sold pursuant to an order under subsection (7), (8) or (9),\nthe proceeds of the sale, less the costs of the sale, shall be paid into the Grand\nCourt for the benefit of persons who are beneficially interested in the relevant\ninterest.\n(11) A person who is beneficially interested in the relevant interest may apply to the\nGrand Court for the whole or part of those proceeds to be paid to that person.\n(12) On an application under subsection (11), the Court shall order the payment to\nthe applicant of \u2014\n(a)\nthe whole of the proceeds of sale together with any interest on the\nproceeds; or\n(b) if another person was also beneficially interested in the relevant interest at\nthe time of the sale, such proportion of the proceeds (and any interest) as\n\nClause 22\nBeneficial Ownership Transparency Bill, 2023\n\nPage 28\n  Introduced\nc\n\nthe value of the applicant\u2019s interest bears to the total value of the relevant\ninterest.\n(13) Where the Court has ordered under subsection (9) that the costs of an applicant\nbe paid from the proceeds of sale, the applicant is entitled to payment of those\ncosts before any person receives any part of the proceeds under this section.\nPART 5 - ACCESS TO BENEFICIAL OWNERSHIP\nINFORMATION\n22.\nAccess to beneficial ownership information\n22. (1) The competent authority shall maintain a search platform by means of which\nthe persons specified in subsection (2) may be provided with access to\ninformation on all beneficial ownership registers maintained on behalf of legal\npersons subject to this Act.\n(2) For the purposes of subsection (1), the competent authority may provide access\nto the information on the search platform to \u2014\n(a)\nthe Royal Cayman Islands Police Service;\n(b) the Financial Reporting Authority, established under section 3 of the\nProceeds of Crime Act (2020 Revision);\n(c)\nthe Cayman Islands Monetary Authority established under section 5 of the\nMonetary Authority Act (2020 Revision);\n(d) the Anti-Corruption Commission established under section 3 of the AntiCorruption Act (2019 Revision);\n(e)\nthe Tax Information Authority, designated under section 4 of the Tax\nInformation Authority Act (2021Revision);\n(f)\nthe Maritime Authority of the Cayman Islands established under section 3\nof the Maritime Authority Act (2013 Revision);\n(g) the Civil Aviation Authority of the Cayman Islands established under\nsection 3 of the Civil Aviation Authority Act (2015 Revision);\n(h) the Registrar of Lands appointed under section 5 of the Registered Lands\nAct (2018 Revision);\n(i)\nan entity undertaking procurement in accordance with the Procurement\nAct (2023 Revision); and\n(j)\nany other body which is \u2014\n(i)\nassigned responsibility under section 4(9) of the Proceeds of Crime\nAct (2020 Revision) for monitoring compliance with money\nlaundering regulations made under the Proceeds of Crime Act (2020\nRevision);\n\nBeneficial Ownership Transparency Bill, 2023\nClause 22\n\nc\nIntroduced\nPage 29\n\n(ii) a licensed financial institution; or\n(iii) a designated non-financial business and profession under regulation\n55A of the Anti-Money Laundering Regulations (2023 Revision).\n(3) The competent authority may charge the prescribed fees for access to the\ninformation on the search platform.\n(4) Subject to subsection (5), the competent authority, in respect of the beneficial\nownership register of a legal person, may \u2014\n(a)\nprovide information to;\n(b) provide access to; or\n(c)\nexecute a search on behalf of,\nthe bodies specified in subsections (2)(a) through (i) and subsection (2)(j)(i) in\naccordance with this Act for the purpose of \u2014\n(i)\nthe performance of its functions under this Act;\n(ii) assisting with the prevention and detection of crime;\n(iii) furthering the interest of national security;\n(iv) enabling those listed in subsections (2)(a) through (g) and subsection\n(2)(j)(i) to fulfil their statutory obligations including statutory obligations\nwith respect to international cooperation; or\n(v) statistics and preparation of statistical reports.\n(5) The Cayman Islands Monetary Authority may, in its discretion or upon request,\nshare information with the competent authority in accordance with section 50A\nof the Monetary Authority Act (2020 Revision).\n(6) The Cabinet may, subject to affirmative resolution in the Parliament, make\nRegulations empowering the competent authority to provide access to members\nof the public to any of the following \u2014\n(a)\nfor an individual who is a registrable beneficial owner \u2014\n(i)\nname;\n(ii) country of residence;\n(iii) nationality;\n(iv) month or year of birth or both; and\n(v) nature of control; and\n(b) for a reportable legal entity \u2014\n(i)\nname;\n(ii) registered office;\n(iii) legal form;\n(iv) registration number; and\n\nClause 23\nBeneficial Ownership Transparency Bill, 2023\n\nPage 30\n  Introduced\nc\n\n(v) nature of control.\n(7) The competent authority or the Registrar may restrict or prohibit access to any\ninformation on the search platform to the extent that the competent authority or\nthe Registrar sees fit.\n23.\nNo disclosure of information\n23. (1) Where access is provided to the search platform in accordance with sections\n22(2)(a) through (i) and 22(2)(j)(i), neither the competent authority nor any\nemployee, servant or agent of the competent authority shall disclose information\nrelating to the search, including the fact that the search was carried out, to any\nperson other than the authorized personnel of the competent authority except\nwhere the disclosure is for statistical or reporting purposes.\n(2) Information maintained by a corporate services provider or the Registrar in\nrespect of the beneficial ownership of a legal person is deemed to be confidential\ninformation under the Confidential Information Disclosure Act, 2016 however\nthe disclosure of such information in accordance with this Act does not\nconstitute a breach of the duty of confidence.\n(3) Subject to sections 18 and 19 of the Tax Information Authority Act (2021\nRevision), information deemed to be confidential under subsection (2) shall only\nbe disclosed in accordance with the Confidential Information Disclosure Act,\n2016.\nPART 6 - POWERS AND ENFORCEMENT\n24.\nCompetent authority or the Registrar may request information\n24. (1) The competent authority or the Registrar may request, by notice in writing, any\ninformation or documentation from a legal person or corporate services provider\nfor the purposes of \u2014\n(a)\ncarrying out their respective functions under this Act;\n(b) verifying the accuracy of beneficial ownership information;\n(c)\nassisting with the prevention and detection of crime or furthering the\ninterests of national security; or\n(d) enabling those bodies listed in sections 22(2)(a) through (g) and (2)(j)(i)\nto fulfil their statutory obligations.\n(2) A legal person or corporate services provider which receives a notice of request\nfor information under subsection (1) shall comply with the notice within the\nperiod and in the manner specified in the request.\n\nBeneficial Ownership Transparency Bill, 2023\nClause 25\n\nc\nIntroduced\nPage 31\n\n25.\nDuty of the corporate services provider to forward correspondence\n25. (1) Where the competent authority or Registrar sends correspondence or\ndocumentation to a legal person or an individual connected to that legal person\nat the address of its corporate services provider, the corporate services provider\nshall forward the correspondence or documentation to the legal person or\nindividual to whom it is addressed without delay.\n(2) Correspondence or documentation under subsection (1) includes requests for\ninformation sent by the competent authority under section 24 and administrative\nfines notices sent by the Registrar under section 26.\n26.\nAdministrative fines\n26. (1) The Registrar may impose an administrative fine on a person who commits a\nprescribed breach.\n(2) The fine for a breach is five thousand dollars.\n(3) The Registrar may \u2014\n(a)\nin addition to the fine for the initial breach, impose a further fine of one\nthousand dollars for every month that the breach continues, until one of\nthe following occurs \u2014\n(i)\nthe breach stops or is remedied;\n(ii) payment of the initial fine and all fines imposed for the continuing\nbreach; or\n(iii) the total of the initial fine and all fines for the continuing breach\namounts to twenty-five thousand dollars; and\n(b) reduce an administrative fine in circumstances as may be prescribed.\n(4) A fine \u2014\n(a)\nmay be imposed for a breach that is not an offence; and\n(b) shall not be imposed by the Registrar where criminal proceedings have\ncommenced or have been concluded in relation to the acts that constitute\nthe breach.\n(5) The penalty for a breach which is also an offence under this Act or any\nregulations made under this Act is not limited by the fine under this section or\nby the penalties under sections 6(2)(ii) and 8 of the Criminal Procedure Code\n(2021 Revision).\n(6) The Registrar shall not impose a fine after the expiration of six months after the\ndate on which the Registrar became aware of the occurrence of the breach.\n(7) The Registrar becomes aware of the breach when the information is first\nreceived from which the breach could reasonably have been inferred.\n\nClause 27\nBeneficial Ownership Transparency Bill, 2023\n\nPage 32\n  Introduced\nc\n\n(8) If a breach under this Act is an offence, a fine for the breach shall not preclude\na prosecution for the offence or liability for any prescribed fees.\n(9) Where an administrative fine remains unpaid for ninety days after imposition of\nthe fine, the Registrar may strike or remove the legal person off the register in\naccordance with the relevant provision as follows \u2014\n(a)\n Part VI of the Companies Act (2023 Revision);\n(b) section 40   of the Limited Liability Companies Act (2023 Revision); or\n(c)\nsection 31 of the Limited Liability Partnership Act (2023 Revision),\nand the legal person shall thereupon be dissolved.\n(10) An administrative fine may be recovered as a debt due to the Crown.\n(11) A person who is aggrieved by a decision of the Registrar to impose an\nadministrative fine under this section may appeal in accordance with the\nprescribed procedure.\n(12) The Cabinet may make Regulations providing for appeals, including appeals\nagainst decisions of the Registrar to impose an administrative fine, to strike off\nor remove the legal person from the register or for the competent authority to\nvary the amount of the fine imposed on appeal.\n27.\nCriminal penalties\n27. (1) A legal person that contravenes section 6 or 14(2) or fails to issue a notice as\nrequired by section 8 or 14, commits an offence and is liable on summary\nconviction for each such contravention \u2014\n(a)\nin the case of a first offence, to a fine of twenty-five thousand dollars; or\n(b) in the case of a second or subsequent offence, to a fine of one hundred\nthousand dollars.\n(2) Where a legal person, other than a limited partnership, is convicted of a third\noffence under subsection (1), the court may order that the legal person be struck\noff the register by the Registrar in accordance with Part VI of the Companies\nAct (2023 Revision), section 31 of the Limited Liability Partnership Act (2023\nRevision) or section 37 of the Exempted Limited Partnership Act (2021\nRevision) as if it is a legal person that the Registrar has reasonable cause to\nbelieve is not carrying on business or is not in operation.\n(3) A corporate services provider who contravenes section 11 or 13 or fails to issue\na notice as required by section 19(1) commits an offence and is liable on\nsummary conviction \u2014\n(a)\nin the case of a first offence, to a fine of twenty-five thousand dollars; or\n(b) in the case of a second or subsequent offence, to a fine of one hundred\nthousand dollars.\n\nBeneficial Ownership Transparency Bill, 2023\nClause 27\n\nc\nIntroduced\nPage 33\n\n(4) A person to whom a notice under section 8 or 14 is addressed commits an\noffence if the person \u2014\n(a)\nfails to comply with the notice; or\n(b) in purported compliance with the notice \u2014\n(i)\nmakes a statement that the person knows to be false; or\n(ii) recklessly makes a statement that is false.\n(5) A person who commits an offence under subsection (4) is liable \u2014\n(a)\non conviction on indictment \u2014\n(i)\nin the case of a first offence, to a fine of twenty-five thousand dollars;\nor\n(ii) in the case of a second or subsequent offence, to a fine of fifty\nthousand dollars or to imprisonment for a term of two years, or to\nboth; or\n(b) on summary conviction to a fine of five thousand dollars or to\nimprisonment for a term of twelve months, or to both.\n(6) A person does not commit an offence under subsection (4)(a) if the person\nproves that the requirement to give information was frivolous or vexatious.\n(7) A person commits an offence if the person \u2014\n(a)\nfails to comply with a duty under section 9 or 15 within the time required\nby the respective section; or\n(b) in purported compliance with such a duty \u2014\n(i)\nmakes a statement that the person knows to be false; or\n(ii) recklessly makes a statement that is false.\n(8) A person who commits an offence under subsection (7) is liable \u2014\n(a)\non conviction on indictment \u2014\n(i)\nin the case of a first offence, to a fine of twenty-five thousand dollars;\nor\n(ii) in the case of a second or subsequent offence, to a fine of fifty\nthousand dollars or to imprisonment for a term of two years, or to\nboth; or\n(b) on summary conviction to a fine of five thousand dollars or to\nimprisonment for a term of twelve months, or to both.\n(9) A person who conducts a search of a legal person\u2019s beneficial ownership register\ncontrary to section 22(4) or discloses beneficial ownership information contrary\nto section 23 commits an offence and is liable on summary conviction to a fine\nof five thousand dollars or to imprisonment for twelve months, or to both.\n\nClause 28\nBeneficial Ownership Transparency Bill, 2023\n\nPage 34\n  Introduced\nc\n\n(10) A person commits an offence who knowing that a relevant interest is subject to\nrestriction \u2014\n(a)\nexercises or purports to exercise any right to dispose of the relevant\ninterest;\n(b) exercises or purports to exercise any right to dispose of any right to be\nissued with the relevant interest; or\n(c)\nvotes in respect of the relevant interest (whether as holder of the interest\nor as proxy) or appoints a proxy to vote in respect of the relevant interest.\n(11) A person commits an offence if the person \u2014\n(a)\nhas a relevant interest that the person knows to be subject to restrictions or\nis entitled to an associated right; and\n(b) enters into an agreement that is void by virtue of section 20(1)(a) or\n20(1)(e).\n(12) A person who commits an offence under subsection (11) is liable on summary\nconviction to a fine of five thousand dollars.\n(13) A person does not commit an offence if the person contravenes subsection (10)\nor (11) in compliance with a direction of the Grand Court given under section\n21.\n(14) Subject to a direction given by the Grand Court under section 21(1), a legal\nperson that issues interests or shares in contravention of a restriction imposed\nby virtue of a restrictions notice, commits an offence and is liable on summary\nconviction to a fine of five thousand dollars.\n(15) Where a legal person commits an offence under this Act, and it is proved that\nthe offence was committed with the consent or connivance of, or was\nattributable to wilful default on the part of a manager, director, member or other\nofficer concerned in the management of the legal person, the manager, director,\nmember or other officer commits the same offence and is liable to the same\npenalty as the legal person.\nPART 7 - MISCELLANEOUS\n28.\nCompetent authority may issue guidance\n28. (1) The competent authority may issue guidance for the purpose of giving practical\nguidance with respect to this Act, including guidance \u2014\n(a)\nto assist with the interpretation of \u201cbeneficial ownership\u201d and \u201cultimate\neffective control\u201d; and\n(b) on the enforcement of administrative fines under this Act.\n\nBeneficial Ownership Transparency Bill, 2023\nClause 29\n\nc\nIntroduced\nPage 35\n\n(2) A legal person, a corporate services provider and a registrable beneficial owner\nshall have regard to the guidance issued under subsection (1).\n(3) The competent authority shall publish the guidance issued under subsection (1)\nin any manner that the competent authority considers will bring the guidance to\nthe attention of the persons who are most likely to be affected by it.\n(4) The competent authority may revise guidance issued under subsection (1) from\ntime to time and any reference to guidance includes a reference to revised\nguidance.\n29.\nRegistrar's rule-making power\n29. The Registrar may, by rules published in the Gazette, provide for \u2014\n(a)\naggravating and mitigating factors in relation to the imposition of\nadministrative fines; and\n(b) the publishing of details related to enforcement actions, including\nadministrative fines, imposed in accordance with this Act.\n30.\nRegulations\n30. The Cabinet may make regulations for the effective implementation of this Act\nincluding regulations \u2014\n(a)\nproviding for anything required to be prescribed under this Act;\n(b) specifying criteria for the exercise of the competent authority\u2019s exemption\npowers under section 10;\n(c)\nrespecting the giving of notices under section 8 or 14, including the form,\ncontent and manner of giving such notices;\n(d) regarding the addition to or removal from any of the lists of required\nparticulars;\n(e)\nrequiring additional matters to be included in a legal person\u2019s beneficial\nownership register including the reporting of dual or multiple nationalities;\n(f)\nproviding for applications to require the competent authority, the\nRegistrar, a corporate services provider or a legal person to refrain from\nusing or disclosing particulars of a prescribed kind from a legal person\u2019s\nbeneficial ownership register (or to refrain from doing so except in\nprescribed circumstances) where an application is made to the competent\nauthority requesting them to refrain from so doing;\n(g) specifying the manner and form in which a legal person shall keep its\nbeneficial ownership register;\n(h) respecting the procedure to be followed by corporate services providers\nissuing and withdrawing restrictions notices, including regulations\nproviding for \u2014\n\nClause 31\nBeneficial Ownership Transparency Bill, 2023\n\nPage 36\n  Introduced\nc\n\n(i)\nthe form and content of restrictions notices, and the manner in which\nthey are to be given;\n(ii) the factors to be taken into account in deciding what is to be\nconsidered as a reason sufficient to justify a person\u2019s failure to\ncomply with a notice issued under section 8 or 14; and\n(iii) the effect of withdrawing a restrictions notice on matters that are\npending with respect to the relevant interest when the notice is\nwithdrawn;\n(i)\nrequiring the reporting of discrepancies in beneficial ownership\ninformation to the Registrar by every person who, by virtue of section\n22(2) or (6), has access to this information;\n(j)\nrespecting the interpretation of the terms \u201cbeneficial owner\u201d, \u201cregistrable\nbeneficial owner\u201d and \u201cspecified conditions\u201d;\n(k) respecting the replacement of any or all references in section 4 to a\npercentage with references to a larger or smaller percentage;\n(l)\nadjusting the specified conditions in section 4 so as to include\ncircumstances that give individuals a level of control over a legal person\nbroadly similar to the level of control given by the other specified\nconditions;\n(m) specifying the circumstances in which a person holds an interest in a legal\nperson or meets a specified condition in relation to the legal person directly\nor indirectly through any number of persons or arrangements of any\ndescription;\n(n) providing for actions that may be taken by the Registrar following receipt\nof a report of discrepancies in beneficial ownership information;\n(o) adding or removing from the list of bodies in section 22(2); and\n(p) any other matter required to be prescribed or for the better carrying out of\nthe objects and purposes of this Act.\n31.\nAmendments by order\n31. The Cabinet may by order \u2014\n(a)\namend any of the definitions or interpretations of terms set out in section\n2; and\n(b) adding the name of any territory or country to the Schedule or deleting the\nname of any territory or country from it.\n32.\nProtection of civil servants from liability\n32. No civil servant shall be liable in damages for anything done or omitted in the\ndischarge of the civil servant\u2019s functions unless it is shown that the act or omission\nwas in bad faith.\n\nBeneficial Ownership Transparency Bill, 2023\nClause 33\n\nc\nIntroduced\nPage 37\n\n33.\nConflict\n33. (1) In the event of an inconsistency between this Act and any relevant legislation,\nthis Act prevails to the extent of the inconsistency.\n(2) In this section, \u201crelevant legislation\u201d means any of the following legislation \u2014\n(a)\nthe Companies Act (2023 Revision);\n(b) the Limited Liability Companies Act (2023Revision);\n(c)\nthe Partnership Act (2013 Revision);\n(d) the Limited Liability Partnership Act (2023 Revision); and\n(e)\nthe Exempted Limited Partnership Act (2021 Revision).\n34.\nAgreements regarding sharing of information\n34. The competent authority shall execute a search of a beneficial ownership register by\nmeans of the search platform if formally requested to do so by the Financial Crime\nUnit of the Royal Cayman Islands Police Service (\u201cthe Unit\u201d) where a senior official\nof the Unit certifies that the request for the search is in response to a request from a\njurisdiction listed in the Schedule that has entered into an agreement with the\nGovernment respecting the sharing of beneficial ownership information made \u2014\n(a)\nby a law enforcement official designated by the agreement; and\n(b) in compliance with that agreement.\n35.\nSavings and transitional\n35. (1) The Cabinet may make regulations to provide for such savings, transitional and\nconsequential provisions to have effect in connection with the coming into force\nof any provision of this Act as may be necessary or expedient.\n(2) Regulations made under subsection (1) may be given retrospective operation to\na day no earlier than the day that subsection (1) comes into force.\n(3) The words \u201cbeneficial owner\u201d when used in relation to \u2014\n(a)\na company, shall have the same meaning as in section 244 of the\nCompanies Act (2023 Revision);\n(b) a limited liability company, shall have the same meaning as in section 73\nof the Limited Liability Companies Act (2023 Revision); and\n(c)\na limited liability partnership, shall have the same meaning as in section\n54 of the Limited Liability Partnership Act (2023 Revision),\nup until the day immediately preceding the commencement of section 4 of this\nAct.\n(4) A legal person that is exempt from the requirement to identify and file\ninformation with respect to registrable beneficial owners shall continue to be\nexempt \u2014\n\nClause 35\nBeneficial Ownership Transparency Bill, 2023\n\nPage 38\n  Introduced\nc\n\n(a)\nin relation to a legal person under the Companies Act (2023 Revision), in\naccordance with section 245 of that Act;\n(b) in relation to a legal person under the Limited Liability Companies Act\n(2023 Revision), in accordance with section 71 of that Act; and\n(c)\nin relation to a legal person under the Limited Liability Partnership Act\n(2023 Revision), in accordance with section 52 of that Act,\nup until the day immediately preceding the commencement of sections 12(1)\nthrough (3) of this Act.\n\nBeneficial Ownership Transparency Bill, 2023\nSCHEDULE\n\nc\nIntroduced\nPage 39\n\n SCHEDULE\n(section 34)\nCOUNTRIES OR TERRITORIES THAT HAVE ENTERED INTO\nAGREEMENTS WITH THE GOVERNMENT FOR THE SHARING OF\nBENEFICIAL OWNERSHIP INFORMATION\n\n1. United Kingdom.\n\nPassed by the Parliament the              day of                           , 2023.\n\nSpeaker\n\nClerk of the Parliament","akn_extracted_at":"2026-06-22 15:41:37.601922+00","cms_id":"2023-0014","law_type":"bill","year":"2023","number":"14","title":"Identification Register Act, 2022 (Commencement) Order, 2023","status":"bill"},"provenance":{"files":[{"file_id":"7106","expr_id":"2307","kind":"akn_xml","filename":"2023-0014.akn.xml","source_url":null,"storage_path":"\/Users\/q\/kyleg-data\/working\/BILLS\/2023\/2023-0014\/2023-0014.akn.xml","content_md5":"c13f16be58a312a7e152a929389d8ac6","byte_size":"82411","http_last_modified":null,"fetched_at":"2026-06-22 15:41:38.124638+00"},{"file_id":"4613","expr_id":"2307","kind":"pristine_pdf","filename":"2023-0014.pdf","source_url":"\/cms\/images\/LEGISLATION\/BILLS\/2023\/2023-0014\/2023-0014.pdf","storage_path":"\/Users\/q\/kyleg-data\/pristine\/BILLS\/2023\/2023-0014\/2023-0014.pdf","content_md5":"b635d92589b25b7659903150e5344786","byte_size":"498445","http_last_modified":null,"fetched_at":"2026-06-16 04:01:11.353563+00"},{"file_id":"4614","expr_id":"2307","kind":"working_pdf","filename":"2023-0014.pdf","source_url":"\/cms\/images\/LEGISLATION\/BILLS\/2023\/2023-0014\/2023-0014.pdf","storage_path":"\/Users\/q\/kyleg-data\/working\/BILLS\/2023\/2023-0014\/2023-0014.pdf","content_md5":"b635d92589b25b7659903150e5344786","byte_size":"498445","http_last_modified":null,"fetched_at":"2026-06-16 04:01:11.353563+00"}],"paragraph_count":28,"latest_history":null},"quality":{"expr_id":"2307","doc_id":"2307","quality_state":"known_issue","quality_score":"55","needs_human_review":"t","deterministic_categories":"{commencement_metadata_problem,duplicate_text,page_header_footer_noise,title_mismatch}","llm_categories":"{}","repair_actions":"{collapse_duplicate_text,strip_page_furniture,verify_commencement_metadata,verify_title_metadata}","finding_severity_counts":"{\"low\": 2, \"high\": 1, \"medium\": 1}","finding_summary":"stored title is not visible in the opening extracted text; repeated line furniture detected: cayman islands x3; introduced x37; beneficial ownership transparency bill 2023 x36","assessed_at":"2026-06-22 15:29:46.419901+00","updated_at":"2026-06-22 15:29:46.419901+00"}}