Is Cayman too complacent or too innocent?

Was Cayman really blacklisted just because it was a bit slow in passing its substance legislation? And is it certain to come off the blacklist in October? This is the view of CIDA and others in Cayman. But is it correct?

A raft of circulars, press releases and various other statements have come out of Cayman since the decision was made by the EU to place this Caribbean jurisdiction on its uncooperative list. They have all said much the same thing.

The party line from Cayman is that this is nothing much more than a little local difficulty which will be rectified when ECOFIN next gets together in October. All that has happened is that the Cayman Islands government was a little bit slow in passing its Private Funds Bill into law. It has been described as ‘a foot fault’ as James Oussedik, a partner at Sidley Austin, put it. Life will continue as normal. Nothing to see here.

To read more on this story, see the February issue of The NED.