Cayman Islands is looking to sign regulatory MOUs with SEBI and IFSCA for information exchange

Cayman Islands Explores MOUs with Indian Regulators for Enhanced Cooperation

The Cayman Islands Monetary Authority (CIMA) is set to explore a series of proposed Memoranda of Understanding (MOUs) with the Indian regulator, the Securities and Exchange Board of India (SEBI), and IFSCA, the GIFT City regulator, aimed at strengthening regulatory cooperation and information exchange.

Strengthening Regulatory Cooperation and Transparency

The proposed MOUs aim to enhance compliance and oversight of investment funds, as well as beneficial ownership disclosure. According to Andre Ebanks, Premier of the Cayman Islands, these agreements will foster greater transparency, cooperation, and a deeper economic relationship between the two countries.

Key Areas of Focus

• Compliance and oversight of investment funds
• Beneficial ownership disclosure
• Strengthening regulatory cooperation and information exchange

Second MOU with SEBI Under Discussion

A second MOU with SEBI is under discussion, focusing specifically on beneficial ownership transparency. This move aims to combat financial crime and ensure investor confidence.

Development of Tailored Regulatory Framework

CIMA is exploring the development of a tailored regulatory framework under the Cayman Islands' Mutual Funds Act for funds entering the Indian market. This framework would involve additional compliance requirements beyond standard Cayman law, developed in consultation with SEBI, to act as a passport for easier entry into the Indian market.

Addressing Tax Haven Misconception

In addressing the Tax Haven misconception, Ebanks stated that "Today, we operate on a tax-neutral basis for investment funds, we are not a tax haven, but rather a transparent facilitator of international capital flow."

Key International Frameworks Embraced by the Cayman Islands

• OECD common reporting standard
• UK and US FATCA
• OECD's crypto assets framework
• EU regional standards

Progress in Anti-Money Laundering and Counter-Financing of Terrorism

The Cayman Islands was removed from the FATF grey list in October 2023, following improvements in its anti-money laundering (AML) and counter-financing of terrorism (CFT) regimes. It has since become one of the first two guest members of FATF, influencing the development of new global standards for smaller nations.

Cayman Islands' Role as a Facilitator of Capital

Ebanks emphasised the Cayman Islands' role as a facilitator of capital rather than a competitor, stating, "We see ourselves as an assembler of capital, happy to integrate into mixed structures with Luxembourg, Singapore, Delaware, and others, to channel investment into India."