The Cayman Islands is to shortly introduce 'fundamental changes' to its beneficial ownership rules. 

This will see the scope of the beneficial ownership regime widening to include limited partnerships, exempted limited partnerships and foundation companies but not foreign companies or trusts.

In a briefing note, Maples Group said on 24 November 2023, the Parliament of the Cayman Islands passed the Beneficial Ownership Transparency Act, 2023 which was later gazetted on 15 December 2023.

"Although, the Act is not yet in force, the new provisions are expected to be introduced very shortly in a phased approach throughout the course of 2024. Once in force, the Act will bring fundamental changes to the existing Cayman Islands beneficial ownership regime.

"The Ministry of Financial Services and Commerce in the Cayman Islands is developing a revised consultation draft of the Beneficial Ownership Transparency Regulations (BOR)  and accompanying Guidance Notes, which are expected to be released in the first quarter of 2024. The current BOR will remain in effect until the Act comes into force.

The key changes which the Act makes to the current BOR and some practical next steps, in particular for vehicles in an investment fund structure, are summarised in this update.