Cayman's cabinet has approved the Beneficial Ownership (Limited Liability Partnership) Regulations, 2019 in response to both Financial Action Task Force anti-money laundering recommendations and the Exchange of Notes with the UK.
The regulations will require limited liability partnerships to file beneficial ownership information with the General Registry in much the same way limited liability companies and other types of companies are doing so already.
The approval comes before the Limited Liability Partnership (Amendment) Law takes effect, later this year.
Last year lawmakers passed an amendment to the Limited Liability Partnership Law that provides access to beneficial ownership registers of limited liability partnerships to Cayman's competent authority via its search platform.
Limited liability partnerships were introduced in Cayman in 2017 and are different from other types of partnerships, such as exempted limited partnerships, in that they are separate legal entities that afford limited liability status to all its partners, Cayman Compass reports.
The law exempts certain LLPs such as those listed on the Cayman Islands Stock Exchange or another approved stock exchange and limited liability partnerships holding a licence under a regulatory law. LLPs that are special purpose vehicles, private equity funds, collective investment schemes and investment funds operated by an approved person are also exempt.
LLPs that claim an exemption under the law must file a declaration with the competent authority, indicating the grounds for the exemption.
In the Cayman Islands, corporate services providers collect and maintain beneficial ownership information of legal persons in the jurisdiction. This information can then be requested and shared by a local competent authority through various agreements, treaties, and memorandums of understanding agreed between the Cayman Islands and other jurisdictions.
To speed up the information exchange process, Cayman developed a centralised beneficial ownership platform at the General Registry to which regulated service providers regularly submit updated information on the owners of Cayman-registered entities.