CAYMAN ISLANDS Trends and Developments Contributed by: Simon Thomas, Richard Spencer, Alexandra Clynes and Sayak Bhattacharya, Campbells
the size, complexity, structure, nature of busi - ness or risk profile of the fund demands so. As part of the governing body’s oversight function, service providers should also be requested to attend meetings where necessary. Beneficial Ownership Transparency Act (BOTA) reforms and key obligations for CIMA- registered funds The Beneficial Ownership Transparency Act (BOTA), effective 31 July 2024, expanded the scope of the Cayman Islands beneficial own - ership regime. It introduced new compliance requirements for entities, including those pre - viously exempt. Registered mutual funds and private funds are impacted but benefit from an CIMA-registered mutual funds and private funds are not required to report their Registrable Ben - eficial Owners (RBOs). Instead, they must pro - vide their Corporate Service Provider (CSP) with details of a designated Contact Person. This alternative route simplifies compliance while ensuring access to beneficial ownership infor - mation when required. Contact person requirements alternative compliance route. Alternative compliance route • Only entities licensed or registered with CIMA or fund administrators holding a Mutual Fund Administrators Licence under the Mutual Funds Act can serve as a Contact Person. • The Contact Person acts as a liaison between the fund and competent authorities, ensuring timely access to beneficial ownership infor - mation within 24 hours upon request.
• CIMA-registered funds must submit written confirmation to their CSP detailing the Con - tact Person’s information. • If any information in the confirmation becomes inaccurate, funds must update their CSP within 30 days to amend and file cor - rected details with the competent authority. Maintaining updated information Funds must ensure that any changes related to the Contact Person or other compliance details are promptly communicated to their CSP. Failure to do so may result in penalties or administra - tive fines. Penalties for non-compliance Registered funds failing to comply with BOTA requirements may face: • administrative fines starting at KYD5,000 per breach, increasing by KYD1,000 monthly until capped at KYD25,000; and • potential dissolution if fines remain unpaid for 90 days. Timing and transitional period While BOTA took effect on 31 July 2024, enforce - ment of new requirements began in January 2025. This streamlined approach under BOTA ensures that CIMA-registered mutual funds and private funds meet international transparency standards while minimising administrative burdens through an alternative compliance pathway. Registered funds can also opt in to maintain a beneficial ownership register if preferred.
Written confirmation obligations For compliance under BOTA:
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