Regulatory Blog

Recent amendments to the Cayman Islands' Common Reporting Standard regime have taken effect, introducing significant changes for Financial Institutions. These updates, which align the Cayman Islands with the OECD's global standards, impact everything from compliance deadlines to the scope of reportable assets and have taken effect from 1 January 2026.

On 19 November 2025, the European Commission unveiled its Digital Omnibus as part of a broader Digital Package, a major initiative to simplify and streamline complex EU digital rules on data, AI cybersecurity and more. This initiative is expected to foster innovation and reduce administrative burdens for businesses by saving up to billions in administrative costs annually while maintaining high standards of data protection, cybersecurity and fairness.

On 26 January 2026, Luxembourg’s Directorate of Registration, Estates and VAT (AED) issued Circular No. 792 quater, setting out AML/CFT identification and verification obligations for professionals under its supervision and replacing Circular 792 ter of 28 July 2025.

On 21 January 2026, the Cayman Islands Department for International Tax Cooperation announced an extension for certain reporting deadlines under the Amended Common Reporting Standard. This applies to Cayman Financial Institutions required to register and maintain information on the DITC Portal.

The Cayman Islands Banks and Trust Companies Act (2025 Revision) serves as a comprehensive legal framework designed to regulate banking and trust activities within the Cayman Islands, ensuring consistency, transparency, and accountability in financial operations. Consolidating legislation dating back to 1989 and integrating subsequent amendments, including those made under the Law Revision Act (2020 Revision), this Act underscores the government’s commitment to maintaining a stable financial environment aligned with international standards. Officially revised and published as of 1 January 2025, it supersedes the 2021 Revision to accommodate recent legislative updates and industry developments.

The Cyprus Securities and Exchange Commission reminds Crypto-Asset Service Providers operating in Cyprus that they must apply for authorisation under Regulation (EU) 2023/1114 on Markets in Crypto-Assets by 27 February 2026.

The Cayman Islands Virtual Asset (Service Providers) Act (2024 Revision) serves as a regulatory foundation for virtual asset services in the Cayman Islands, establishing robust guidelines for the governance and supervision of this dynamic sector. This legislation underscores the jurisdiction’s commitment to fostering innovation while safeguarding the integrity of its financial ecosystem through structured oversight, compliance requirements, and clear operational expectations for virtual asset service providers.

The Cayman Islands Private Funds Act (2025 Revision) serves as a comprehensive legal framework governing the regulation, registration, and supervision of private funds in the Cayman Islands. It establishes clear guidelines to ensure transparency, accountability, and compliance in the operations of these funds, thereby promoting investor protection and maintaining the jurisdiction's reputation as a leading global financial centre.

The Bermuda Companies Act 1981 is a comprehensive legal framework that governs various aspects of company law, addressing the formation, management, administration and dissolution of companies operating within Bermuda.

The Bermuda Monetary Authority Act 1969 establishes the Bermuda Monetary Authority as a corporate body with perpetual succession. Its primary objectives include issuing and redeeming Bermuda's currency, supervising and regulating financial institutions, promoting financial stability, detecting and preventing financial crimes, and advising the government on monetary matters. The BMA also oversees innovative business development through its Innovation Hub.

The BVI Financial Investigation Agency Act Revised Edition as of 1 January 2020, is a comprehensive legal framework that establishes and governs the Financial Investigation Agency, a statutory body charged with investigating and combating financial crimes within the Virgin Islands. Originally enacted through Act 19 of 2003 and coming into force on 1 April 2004, the Act has undergone several amendments to enhance its scope and efficacy, notably through Acts in 2007, 2008, 2013, 2015, and 2017 (plus the further amendments outlined in detail below).

The BVI Proceeds of Criminal Conduct Act, revised as of 1 January 2020, serves as a foundational legal instrument in the BVI, aimed at dismantling the financial incentives of crime by addressing the recovery and management of assets derived from illicit activities. Originally enacted in 1997, the legislation has undergone numerous and significant updates, as reflected in later amendments and orders such as the 2021 and 2023 Amendments, as well as the Proceeds of Criminal Conduct (Designated Countries and Territories) Order of 1999. Together, these modifications underscore the Act’s adaptability to emerging challenges, particularly in the context of global financial crimes.