Regulatory Blog

On 4 October 2024, the Cayman Islands Monetary Authority published a new Rule and Statement of Guidance establishing recruitment and selection standards for Trust and Corporate Service Providers and Company Managers. This RSOG sets minimum expectations for recruitment, training, and continued development of staff to ensure compliance with regulatory standards.

On 8 October 2024, the Council of the European Union issued a press release condemning Russia's escalating hybrid activities, which target EU member states and their partners. These actions, which include cyber-attacks, misinformation, sabotage, arson, and disruptions to critical infrastructure, are seen as part of a coordinated effort by Russia to destabilise the EU, weaken its unity and undermine support for Ukraine.

The European Union introduced a new sanctions framework aimed at addressing Russia’s destabilising actions abroad. The EU will now be able to impose restrictive measures on individuals and entities involved in activities by Russia that threaten the security, independence, and democratic values of the EU, its member states, international organisations and third countries.

On 28 October 2024, the British Virgin Islands Financial Services Commission and Financial Investigation Agency jointly released new guidance to help financial institutions and designated non-financial businesses and professions manage risks associated with third-party introducers. This guidance is aimed at strengthening compliance with anti-money laundering regulations and related local legislation by offering a structured, risk-based approach.

On 25 October 2024, the EU Commission released the final Delegated Regulation that supplements Regulation (EU) 2015/760 of the European Parliament and the Council, which pertains to regulatory technical standards known as the "ELTIF RTS." The regulation outlines critical requirements for European Long-Term Investment Funds, particularly concerning the matching of transfer requests, pricing, investor disclosures, and asset valuations.

The Financial Services Commission Act 2001 (the FSC Act) is the umbrella to the financial services legislation in the BVI. The FSC Act has recently been amended by the Financial Services Commission (Amendment) Act 2024 (the Amendment). The Amendment was assented by the Governor of the BVI on 29 October 2024 and Gazetted on 7 November 2024. The Amendment is not yet in force and will come into force on such a date as the Minster may by Notice publish in the Gazette.

On 6 November 2024, the Governor of the Virgin Islands issued a Notice under the Virgin Islands Sanctions Regulations, empowering certain officials and entities to manage and enforce sanctions.

On 7 November 2024, the UK unveiled its largest sanctions package against Russia since mid-2023, aiming to weaken Russia's military and curtail Russian-backed mercenary operations worldwide. With 56 new designations, the sanctions directly impact Russian supply chains essential for military equipment, specifically targeting companies in countries like China, Turkey, and Central Asia that provide critical goods such as microelectronics, machine tools, and drone components.

On 1 January 2025, fees for certain Cayman Islands legal entities will change. These entities include exempted limited partnerships, limited liability partnerships, companies, and limited liability companies.