Regulatory Blog

The seminar hosted by the Cayman Islands Compliance Association and the Department for International Tax Cooperation in November 2024, provided important updates and valuable insights into the Cayman Islands’ tax transparency initiatives, compliance priorities and regulatory developments.

In June 2024, the English Court of Appeal’s judgment in Celestial Aviation Services Ltd v UniCredit Bank AG (London Branch) [2024] EWCA Civ 628 overturned a High Court ruling that raised concerns over the obligations of contracting parties under sanctions. The case addressed the extent to which sanctions legislation affects payment obligations under letters of credit, particularly where parties face obstacles due to international sanctions regimes.

On 2 December 2024, the Bermuda Ministry of Justice issued AML-ATF Ministerial Advisory 3/2024, emphasising the need for vigilance against money laundering and terrorist financing risks in specific jurisdictions. This advisory provides guidance for financial institutions and relevant entities in Bermuda on applying Enhanced Customer Due Diligence (EDD) for transactions involving high-risk countries. This Advisory replaces all previous advisory notices issued by the Minister of Justice on this subject.

Recent judgments from the Court of Justice of the European Union (CJEU) and the Luxembourg District Court have clarified VAT obligations for Luxembourg board members.

The Virgin Islands have enacted the Financial Investigation Agency (Amendment) Act, 2024, an essential piece of legislation aimed at strengthening financial integrity and combating illicit financial activities. This Act, gazetted on 5 December 2024, introduces significant updates to the Financial Investigation Agency Act, Revised Edition 2020, reflecting the Territory's commitment to global standards in financial regulation and security.

On 29 November 2024, the European Commission published on its official gazette the Commission Implementing Regulation (EU) 2024/2984 which outlines regulatory technical standards for the preparation of forms, formats, and templates for the preparation of crypto-asset white papers. These new regulatory technical standards are part of the broader Regulation (EU) 2023/1114 market in crypto-assets (MiCAR), aiming to maximise transparency, investor protection, and market integrity.

On 29 November 2024, the European Commission adopted new regulatory technical standards to supplement the EU Regulation 2023/1114 on markets in crypto-assets (MiCAR). These regulatory technical standards specify the content and format of order book records for crypto-asset service providers (CASPs) operating crypto-asset trading platforms (CATPs). The move comes as part of the EU’s broader effort to regulate the rapidly growing crypto-asset market and ensure greater transparency and consumer protection.

On 4 December 2024, the Bermuda Monetary Authority proposed significant amendments to the Insurance Act 1978 to enhance its regulatory framework for group supervision. These proposals aim to improve the oversight of insurance groups, ensuring that Bermuda maintains its reputation as a robust international financial centre. Below, we explore the key proposals and their potential impact on Bermuda’s insurance industry.

On 22 November 2024, the European Commission updated its frequently asked questions on sanctions against Russia and Belarus. The update explains the "best efforts" obligation under Article 8a of Council Regulation (EU) No 833/2014 on the EU sanctions compliance obligations of EU operators and entities outside the EU, including those in Russia, that such operators own or control. This places a critical responsibility on EU operators to prevent any actions outside the EU that could undermine the prohibitions outlined in Regulation 833.