MFA Submits Comments to Cayman Islands Ministry of Financial Services Regarding Consultation on Beneficial Ownership

On January 31, MFA submitted a letter to the Cayman Islands Ministry of Financial Services in response to its consultation on beneficial ownership of Cayman Islands-Registered Companies. The consultation requests comment on, among other things, the implementation of a central registry, which may be made publicly available, of the beneficial ownership and control of companies in the Cayman Islands. In the letter, MFA explains that managers of Cayman Islands funds are already subject to regulatory regimes designed to provide international transparency and combat money laundering, and that managers will need to enhance their due diligence in response to the Foreign Account Tax Compliance Act. MFA believes a central registry of beneficial ownership information would increase regulatory burdens for firms, and is not necessary in light of the existing regulatory regimes.