Regulatory Blog

On 25 March 2026, the UK published updated guidance under the Iran (Sanctions) Regulations 2023, reinforcing its commitment to addressing human rights violations, deterring hostile activities, and promoting international security.

AI is no longer a future prospect. It is transforming the way financial services operate right now. For businesses in offshore financial centres such as the British Virgin Islands, the Cayman Islands, and Jersey, the opportunities are immense but so are the risks. From algorithmic decision-making and automated compliance tools to AI-driven investment strategies, the technology is advancing faster than the regulatory framework designed to govern it. With no comprehensive AI-specific legislation yet in place across key offshore jurisdictions, firms face a critical question – how do you innovate responsibly while staying on the right side of the law?

On 25 March 2026, the Department for International Tax Cooperation published an industry advisory announcing an extension to the registration deadline under the Crypto-Asset Reporting Framework.

Following the invasion of Ukraine by Russia, the UK Government, alongside the member states of the European Union, the United States of America and other global stakeholders issued significant new sanctions. View a table of all the sanctions here.

The European Union and the United Kingdom proceeded with the announced reduction in the price cap for Russian-origin crude oil to US$44.10 per barrel, effective 1 February 2026. This measure, part of ongoing sanctions under Regulation (EU) 833/2014, aims to curtail Russia's revenue streams while ensuring global energy market stability.

The UK Parliament has a vested interest in ensuring compliance of sanctions in the Overseas Territories since the UK is responsible, under the UN framework, for the application of sanctions in all places that the UK claims sovereignty. Added to that, the UK Sanctions and Money Laundering Act 2018 formalised the post-Brexit settlement on sanctions implementation in the OTs (with the Crown Dependencies being subject to other equivalent arrangements).

On 9 February 2026, the Cayman Islands Government published three legislative instruments: the Mutual Funds Bill, Private Funds Bill, and Virtual Asset Bill. These were created to answer a number of pressing questions arising from tokenised investment funds and to establish a clear and reliable regulatory framework for tokenised investment funds.

This guide outlines the critical amendments to the Cayman Islands’ Common Reporting Standard Regulations, introduced by the Tax Information Authority (International Tax Compliance) (Common Reporting Standard) (Amendment) Regulations, 2025, here. These changes represent a significant shift in the compliance landscape, aligning the jurisdiction with global OECD standards and the new Crypto-Asset Reporting Framework.

On 24 February 2026, the United Kingdom government announced its most extensive package of sanctions against the Russian Federation since 2022. Published by the Foreign, Commonwealth & Development Office, this package comprises nearly 300 new designations targeting critical Russian revenue streams, energy infrastructure and military supply chains.

The offshore regulatory landscape continues to evolve at a rapid pace, with regulatory bodies in the Cayman Islands and British Virgin Islands introducing updates that reflect the growing global demand for transparency and compliance. As we move into 2026, several critical considerations have emerged for offshore entities, particularly those with ties to the Middle East. This article outlines five key areas that demand attention and offers practical insights for businesses seeking to stay ahead of the curve.

On 4 February 2026, the Cayman Islands Monetary Authority published a notice to assist stakeholders in interpreting the revised fees for regulated mutual funds and private funds, effective 1 January 2026. These updates follow CIMA's earlier notice on 31 December 2025, which outlined broader fee adjustments across financial services to align with international standards and enhance administrative efficiency.

On 13 February 2026, the Cayman Islands Monetary Authority extended the deadline for settling outstanding balances related to revised annual fees for regulated mutual and private funds.