The following is a statement by Hon. Tara Rivers, Minister of Financial Services & Home Affairs, in regards to the 'Paradise Papers.'
This weekend the international media published articles based on documents that they are calling the Paradise Papers. These documents, as the public is aware, were taken from servers in a number of Appleby offices. The Cayman Islands, which has an Appleby office, was mentioned in some of these media articles.
The Ministry of Financial Services is closely monitoring developments.
The reporting on the ‘Paradise Papers’ does not provide any evidence of wrongdoing. The longstanding position of the Cayman Islands is that that the effective implementation of global regulatory standards helps to enhance the socioeconomic contribution of the financial service industry. We have a strong history of adhering to these standards, and we will continue to strengthen our regulatory framework and maintain our strong relationships with international authorities, including through our multiple mechanisms for exchanges of information on tax and beneficial ownership information.
It is well known that the Cayman Islands has a strong legislative and regulatory framework that is based on British common law. But saying it isn’t enough; we need to continue to prove that it’s strong.
With this in mind, I note that the Cayman Islands has recently, once again, been rated largely compliant by the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes – a rating shared with Australia, Canada and Germany. I also note that we provide tax and beneficial ownership information to jurisdictions worldwide.
These are just a few examples of why the Cayman Islands is not a place to hide wealth, and it’s important for the public to know this.
It’s also important for the public to know that the Cayman Islands financial services business includes many types of investors, and not exclusively the rich. Our jurisdiction offers the international business community a framework from which to conduct legitimate business; and investments made using Cayman vehicles benefit many countries around the world, including developed and developing economies, to create jobs and generate domestic incomes. For example, investments, such as pension funds, that use Cayman vehicles benefit the broader populations of these countries.