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New Legislation for Non-Profit Organisations in the Cayman Islands

Following a lengthy period of consultation, both with members of the public and industry stakeholders, the Cayman Islands Government recently passed the Non-Profit Organisations Law, 2017 (“the Law”). The Law is an entirely new development for the Cayman Islands (“Cayman”): up until this point, the jurisdiction did not have any charities legislation or any laws otherwise governing the formal registration and record-keeping of non-profit organisations (“NPOs”).

The introduction of the Law, which will come into force on 1 August 2017, is part of Cayman’s ongoing commitment to increased transparency and its contribution to the global fight against corruption, money-laundering and terrorism. In essence, it provides for the establishment of a registration system to deal with the regulation and monitoring of NPOs operating in Cayman and to provide, where appropriate, for the investigation into the operations of funds flowing through those NPOs.

NPOs

A NPO is defined under the Law as including a company or body of persons, whether incorporated or unincorporated, or a trust:

  • established primarily for the promotion of charitable, philanthropic, religious, cultural, educational, social or fraternal purposes, or other activities or programmes for the public benefit or a section of the public within Cayman or elsewhere; and
  • which solicits contributions from the public or a section of the public within Cayman or elsewhere.

This definition has a very wide scope, and it is obvious that it will capture a very significant number of NPOs throughout Cayman, regardless of their size and regardless of whether they have been established for minor short-term fundraising purposes or with a more wide-reaching and long-term charitable intent. Importantly, the only NPOs that are exempt from coverage under the Law are those which have a government entity as their principal regulator, or are established as a trust where the trusteeship of the trust includes a trust company licensed under the Banks and Trust Companies Law (2013 Revision).

 

To continue reading full articles in PDF format:
New Legislation for Non-Profit Organisations in the Cayman Islands

 


Bernadette Carey
Counsel

Cayman Islands   +1 345 814 7371


Robert Lindley
Counsel, Head of Cayman & BVI Private Client & Trust

Cayman Islands, British Virgin Islands   +1 345 814 7360


Paul Smith
Partner, Head of Cayman Islands Litigation & Restructuring Practice

Cayman Islands   +1 345 814 7777


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Alerts

New Legislation for Non-Profit Organisations in the Cayman Islands

Following a lengthy period of consultation, both with members of the public and industry stakeholders, the Cayman Islands Government recently passed the Non-Profit Organisations Law, 2017 (“the Law”). The Law is an entirely new development for the Cayman Islands (“Cayman”): up until this point, the jurisdiction did not have any charities legislation or any laws otherwise governing the formal registration and record-keeping of non-profit organisations (“NPOs”).

The introduction of the Law, which will come into force on 1 August 2017, is part of Cayman’s ongoing commitment to increased transparency and its contribution to the global fight against corruption, money-laundering and terrorism. In essence, it provides for the establishment of a registration system to deal with the regulation and monitoring of NPOs operating in Cayman and to provide, where appropriate, for the investigation into the operations of funds flowing through those NPOs.

NPOs

A NPO is defined under the Law as including a company or body of persons, whether incorporated or unincorporated, or a trust:

  • established primarily for the promotion of charitable, philanthropic, religious, cultural, educational, social or fraternal purposes, or other activities or programmes for the public benefit or a section of the public within Cayman or elsewhere; and
  • which solicits contributions from the public or a section of the public within Cayman or elsewhere.

This definition has a very wide scope, and it is obvious that it will capture a very significant number of NPOs throughout Cayman, regardless of their size and regardless of whether they have been established for minor short-term fundraising purposes or with a more wide-reaching and long-term charitable intent. Importantly, the only NPOs that are exempt from coverage under the Law are those which have a government entity as their principal regulator, or are established as a trust where the trusteeship of the trust includes a trust company licensed under the Banks and Trust Companies Law (2013 Revision).

 

To continue reading full articles in PDF format:
New Legislation for Non-Profit Organisations in the Cayman Islands

 


Bernadette Carey
Counsel

Cayman Islands   +1 345 814 7371


Robert Lindley
Counsel, Head of Cayman & BVI Private Client & Trust

Cayman Islands, British Virgin Islands   +1 345 814 7360


Paul Smith
Partner, Head of Cayman Islands Litigation & Restructuring Practice

Cayman Islands   +1 345 814 7777


 

JURISDICTION(S)

Cayman Islands


International Office(s)

Cayman Islands
Dubai
Hong Kong
London
Singapore