Cayman beneficial ownership regime update

click to visit World Fuel Services

Locally owned and based Aviation Management Services (Cayman) Ltd. (AMS) has announced that the new legislation establishing a beneficial ownership regime in the Cayman Islands commenced on 1 July 2017 (in lieu of any grace period to allow time to comply with the new legislation).

The new legislation will require companies incorporated or registered in the Cayman Islands to maintain a register of information about their beneficial owners to be held at its registered office in the Cayman Islands maintained by a licensed corporate services provider. This register will be submitted to a secure non-public centralized platform maintained by the Registrar of Companies of the Cayman Islands.

The new requirements will apply to companies incorporated under the Companies Law and to limited liability companies formed and registered under the Limited Liability Companies Law, 2016. This will include ordinary resident and non-resident companies, special economic zone companies, exempted companies (including limited duration and segregated portfolio companies) and limited liability companies.

Will my aircraft with Cayman registration still be protected and kept private from this beneficial owner listing requirement?

There are a few exemptions where certain categories of companies or limited liability companies will not need to maintain a register, and will keep the privacy of your aircraft intact.

Generally, an exemption will apply if the company or limited liability company is itself, or is a subsidiary of another legal entity which is:

  1. Managed, arranged, administered, operated or promoted by an “approved person” as a special purpose vehicle, private equity fund, collective investment scheme or investment fund; or
  2. A general partner of any vehicle, fund or scheme referred to in paragraph (c) above that is managed, arranged, administered, operated or promoted by an “approved person”.
  3. Listed on the Cayman Islands stock Exchange or another approved stock exchange (eg. NYSE, NASDAQ, London or Hong Kong)
  4. Registered or licensed under one of the Cayman Islands regulatory laws such as the Mutual Funds Law (2015 revision) or the Securities Investment Business Law (2011 revision).

The application of the new legislation is therefore limited in scope and will not apply to companies or limited liability companies registered as “excluded persons” under the Securities Investments Business Law (2011 Revision). Further, the new requirements do not apply to a trust or exempted limited partnership established under Cayman Islands law or to a foreign company or foreign limited liability company that is registered as a “foreign company” under Part IX of the Companies Law (2016 Revision).

For assistance and clarifications on this new legislation, contact AMS to advise how you may be affected or otherwise restructure to limit any potential exposures regarding your aircraft ownership.

BlueSky Business Aviation News | 13th July 2017 | Issue #424