London Daily

Focus on the big picture.
Thursday, Sep 11, 2025

Cayman Signals Willingness to Abandon Corporate Secrecy – But Not Yet

Cayman Signals Willingness to Abandon Corporate Secrecy – But Not Yet

Simon Bowers
The Cayman Islands, one of the world’s most important offshore tax and secrecy havens, has said it will slowly move towards making public the names of individuals behind tens of thousands of companies registered in the territory.

But the three-island Caribbean jurisdiction, home to almost 65,000 people, insisted it would not be rushed. It will first watch as European Union countries make good on their commitment to introduce corporate ownership registries by 2023. In a  statement, the Cayman government said: “We will advance legislation to introduce public registers of beneficial ownership information when that occurs.”

Pressure on tax havens to abandon corporate secrecy follows several large data leaks that have thrown a rare spotlight on the inner workings of the offshore industry — exposed, in large part, by the Offshore Leaks, Panama Papers and Paradise Papers investigations from the International Consortium of Investigative Journalists. As a result,  jurisdictions like Cayman have been forced to consider public registries that show who ultimately owns all locally registered companies.

In the absence of such measures, corporate secrecy can be exploited by criminals ranging from drug cartels and sanction-busters to tax evaders and people traffickers. At the same time, small, remote jurisdictions can gain economic advantage by tailoring their laws to cater to wealthy corporations and individuals looking to set up shell companies and cloak their business affairs in secrecy.

In the past, Cayman Islands companies featured in some of the world’s biggest corporate scandals, and the territory was once a regional hotspot for drug smuggling and money laundering.

More recently, the islands’ offshore economy has focused on hedge fund management and insurance, though it came under fire in 2009 when Barack Obama, then a U.S. presidential candidate, described Ugland House, an office block where tens of thousands of Cayman companies were registered, as the “biggest tax scam in the world.”

Cayman’s latest transparency pledge was immediately welcomed by anti-corruption group Global Witness. Senior campaigner Naomi Hirst said: “This commitment from the Cayman Islands to reveal the real people behind companies on their shores shows how company transparency is now the global standard in financial integrity.”

The move comes almost 18 months after backbench members of parliament in the United Kingdom unexpectedly out-maneuvered the British government, passing a law that would eventually force corporate transparency on Britain’s overseas territories — 14 former colonies including leading tax havens such as the British Virgin Islands, Gibraltar and the Cayman Islands.

Each of the U.K.’s overseas territories operates as an almost entirely self-governing jurisdiction. Britain only rarely uses its powers to intervene, known as “orders in council.” In 1991, it did so to outlaw the death penalty, and in 2000, it acted again, decriminalizing homosexual acts.

British backbench members of parliament had hoped their 2018 law, which committed the government to another order in council, would force U.K. overseas territories to introduce public registries of ownership by 2020, but at the end of last year, British foreign office minister Tariq Ahmad explained that the government would not, in fact, require the measures to be in place until 2023.

“[Overseas territories will] be obligated to produce an operational public register by 2023. That is the current timetable,” he said in December.

However, the latest comments from Cayman Islands suggest the Caribbean jurisdiction may once again be looking to push back on this deadline.

Together with other overseas territories, Cayman reacted angrily to moves by British parliamentarians to intervene in its affairs last year. At the time, Alden McLaughlin, Cayman Islands premier, said he was considering a legal challenge to the legislation.

“We don’t want to wind up in a situation where every time the U.K. parliament disagrees with a decision in one of the territories, it has the power to legislate for us,”he said. “Then it is not just the issue of public registries, it is not just the future of our financial industry that is at risk, it is our very existence.”

Lorna Smith, then executive director of BVI Finance, an offshore industry trade group, said the U.K.’s move “smacks of colonialism.”

Defending their existing arrangements for guarding against corporate abuse and criminality, many overseas territories said they already held information on who secretly owned companies, and shared the details with overseas tax investigators and law enforcement when requested to do so.

A report published by the French parliament last week noted that following Panama Papers revelations in 2016, tax officials in France had started a large number of investigations, issuing 307 requests for assistance with their inquiries, 196 of which were sent to the BVI. However, the report noted, three years later, 176 requests remained unanswered.

Newsletter

Related Articles

0:00
0:00
Close
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
Pig Heads Left Outside Multiple Paris Mosques in Outrage-Inducing Acts
Nvidia’s ‘Wow’ Factor Is Fading. The AI chip giant used to beat Wall Street expectations for earnings by a substantial margin. That trajectory is coming down to earth.
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
On the Anniversary of Queen Elizabeth’s Death: Prince Harry Returns to Britain
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Murdoch Family Finalises $3.3 Billion Succession Pact, Ensuring Eldest Son’s Leadership
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Court Staff Cover Up Banksy Image of Judge Beating a Protester
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
Elon Musk Poised to Become First Trillionaire Under Ambitious Tesla Pay Plan
France, at an Impasse, Heads Toward Another Government Collapse
Burning the Minister’s House Helped Protesters to Win Justice: Prabowo Fires Finance Minister in Wake of Indonesia Protests
Brazil Braces for Fallout from Bolsonaro Trial by corrupted judge
The Country That Got Too Rich? Public Spending Dominates Norway Election
Nearly 40 Years Later: Nike Changes the Legendary Slogan Just Do It
Generations Born After 1939 Unlikely to Reach Age One Hundred, New Study Finds
End to a four-year manhunt in New Zealand: the father who abducted his children to the forests was killed, the three siblings were found
Germany Suspends Debt Rules, Funnels €500 Billion Toward Military and Proxy War Strategy
EU Prepares for War
BMW Eyes Growth in China with New All‑Electric Neue Klasse Lineup
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
US Justice Department Launches Criminal Mortgage-Fraud Probe into Federal Reserve Governor Lisa Cook
Escalating Drug Trafficking and Violence in Latin America: A Growing Crisis
US and Taiwanese Defence Officials Held Secret Talks in Alaska
Report: Secret SEAL Team 6 Mission in North Korea Ordered by Trump in 2019 Ended in Failure
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Florida Murder Case: The Adelson Family, the Killing of Dan Markel, and the Trial of Donna Adelson
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
×