UBO registers in the Caribbean
With compliance and transparency becoming a global trend, public ultimate beneficial owner (UBO) registers are on the rise, and the Caribbean islands is a jurisdiction that has recently adopted these regulations.
Countries across the world have embraced using semi-public or public UBO registries as transparency becomes an increasingly high priority. The European Union (EU) has required all EU countries to have public UBO registries since 2020. These regulations are spreading to Caribbean territories and islands, specifically the Cayman Islands, the British Virgin Islands (BVI) and Curaçao.
Current UBO registers
Curaçao
The UBO registery requirements have been in force in Curaçao since 8 June 2024. The register is part of Curaçao’s efforts to comply with the international standards set by the Financial Action Task Force (FATF) to enhance transparency and combat money laundering and terrorist financing. The decree sets the rules for registration of ultimate beneficial owners of legal entities in Curaçao’s UBO register. Newly established entities are required to register their UBOs within two weeks of incorporation. Any changes to the UBO information must be reported within two weeks of their occurrence. Existing entities must complete their UBO registration by 30 June 2025.
The register is managed by the Curaçao Chamber of Commerce and Industry and is not publicly accessible. Only specific authorities, such as the Public Prosecutor’s Office, the Central Bank of Curaçao and St. Maarten, the Financial Intelligence Unit and the Tax Inspectorate, can access the information. Unlike in other jurisdictions, service providers in Curaçao do not have access to the UBO register, helping to maintain a greater level of privacy.
Non-compliance with the UBO register requirements in Curaçao can result in significant penalties.
1. Administrative fines: entities that fail to comply with the UBO registration requirements can face administrative fines of up to ANG25,000 (approximately US$14,000)
2. Criminal prosecution: in severe cases, non-compliance can lead to criminal prosecution
These penalties are designed to ensure that entities adhere to the regulations and contribute to the overall transparency and integrity of the financial system in Curaçao.
Cayman Islands and the BVI
The Cayman Islands and BVI currently have central UBO registers.
The Beneficial Ownership Secure Search System Act (BOSS Act) was established in 2017 in the BVI. The BOSS Act facilitates the effective storage and retrieval of beneficial ownership information for all BVI companies and legal entities using the BOSS system.
The Cayman Islands also has a Beneficial Ownership Register, but, as in the BVI, the information is not accessible to the public. The information is currently only accessible to government agencies. The jurisdictions are not concerned about the collection of the data, but rather with the fact that the information will become publicly available. By making it public, anyone will be able to know the ultimate beneficiaries and owners of companies or trusts and could use this information however they see fit.
In the past, islands like the Caymans and BVI had a reputation for money laundering and tax evasion. While this has changed in recent years, unfortunately, public opinion has not. Most of the entities in these jurisdictions are set up for legitimate and transparent business deals. Despite this, the islands still have strong privacy regulations and many clients see the UBO public registry as an invasion of this privacy as it provides an unwelcome level of transparency. Questions are being asked about why UBO data should be available to the public. However, the reputation of the islands can make it hard for them to fight making the registers public.
Differences in UBO regulations
UBO is not the same in every country. The definitions vary - some define a UBO as having 25% interest or more in a company, trust or foundation, while others use the benchmark of 10%.
Understanding the differences in the UBO legislation in the Caribbean islands is important for compliance. There are penalties for non-compliance and not registering the UBO in the public register.
As requirements for UBOs become stricter, companies and private shareholders may look to move their businesses to jurisdictions that do not have UBO laws, like the US.
Talk to us
TMF Group has the expert local knowledge to register your company with the UBO registers in the Cayman Islands, the BVI and Curaçao. Our experts can file the required information and maintain updates.
Let us ease the administrative burden of UBO regulations – make an enquiry about our services today.
