With the introduction of the Beneficial Ownership Transparency (Access Restriction) Regulations 2024 individuals can now apply to restrict public access to beneficial ownership information on Cayman Islands’ registered entities.

This brief guide outlines who is eligible and how to navigate the application process.

Eligibility

Individuals can apply to restrict access if they reasonably believe that public disclosure of their information relating to their association with the target entity, the activities of the target, or one or more characteristics or personal attributes when associated with the target, could place them, or a person living with them, at serious risk of kidnapping, extortion, violence, intimidation, or similar harm.

The risk must be serious and must arise from the activities of the target entity’s business activities or nature of business. Being a high-net-worth individual alone does not qualify as sufficient grounds for such protection.

Information and Documentation Required

The applicant must complete a prescribed form, which can be found at Schedule 1 of the Regulations. The information and documentation which are required with the application include:

• Proof of identity.
• Details of any previous convictions involving imprisonment of more than 5 years or dishonesty.
• Evidence of satisfying the eligibility criteria, which may include: a police incident number and report if the individual has been attacked, or threatened, and details of the law enforcement contact person (if relevant); evidence of a threat or attack such as photos or recordings; examples of possible disruption or targeting by activities; and examples that the individual works for an organisation whose activities have put them at risk in the past.

A fee of CI$1,000 will be payable for the application.

When to Apply

An application to protect from disclosure can be made at any time after the entity is established in the jurisdiction or at any time while the entity is in existence. Therefore, the application can be made as a pre-emptive measure before any information has been disclosed.

Application Review

The relevant authority will assess whether the request meets the eligibility criteria and additional information or evidence may be requested as part of the review process. Questions relating to the assessment of the nature or extent of any serious risk may also be referred to a local or overseas law enforcement agency or financial intelligence unit.

Determination

Applicants will receive written notification of the relevant authority’s decision. If the application is granted, the protection will last for a period of 3 years (unless revoked). The protection will only stop disclosure to those applicants who have or may be granted access to beneficial ownership information on the ‘legitimate interest’ ground (see our separate article here on such applications). It will not prevent access by Cayman Islands law enforcement authorities, government agencies and financial institutions.

If denied, the relevant authority will provide written reasons for the refusal.

The review process may take several weeks.

Revocation

If the application is granted, the protection may be revoked in circumstances where the applicant or person living with them has previously or is now serving a prison sentence of more than 5 years or is convicted of an offence of dishonesty. The protection may also be revoked if the individual or person living with them is or has been subject to any UK sanctions extended to the Cayman Islands. The individual will be provided with an opportunity to challenge the intended revocation before it is implemented.

Assistance

Navigating the regulatory requirements can be complex and seeking professional guidance is recommended.

If you require guidance or support with an application, a member of our team would be happy to assist – please contact us here.