PANAMA PAPERS: report from BVI denied

MOSSACK FONSECA has released an “explanatory statement” to refute a report in La Prensa that its ability to create new companies in the BVI had been restricted by that territory’s Financial Services Commission.

In the statement, the firm said that the commission has not requested the company stop incorporating companies or that it had been asked to assigned a “qualified person” to assess its business.

That statement, however, contradicts information posted on the Financial Services Commission web site, says La Prensa  as well as an article published on the web site of the BVI Beacon newspaper. that  confirmed reports about the actions of the commission.

The activities of Mossack Fonseca were exposed by an investigation led by the International Consortium of Investigative Journalists, which had access to the company’s files. Those reports were made public shortly before the commission announced the measures against Mossack Fonseca, which also included a fine of $31,500 for failing to carry out required due diligence on customers.

Meanwhile a press release from  Cayman Finance draws attention to  the country’s emphasis  on checking  beneficial wownership. It reads:

The Cayman Islands Government’s recent announcement that Cayman has joined the initiative for the development of a global standard for the sharing of beneficial ownership information has been welcomed by Cayman Finance

Cayman Finance’s collaborative relationship with Government supports enhancements like these to our regulatory and legal infrastructure to promote even greater transparency with law enforcement here and around the world.  In addition to supporting the new prohibition on bearer shares and the repeal of Cayman’s Confidential Relationships law and replacement with new data protection legislation, Cayman Finance has also played a critical and constructive role in the negotiation and implementation of the new beneficial ownership agreement with the UK …

This will build on an already world leading licensed corporate services provider verified beneficial ownership system that has been in place for years in the Cayman Islands. This system provides regulated due diligence know-your-customer checks and operates transparently with law enforcement globally… The result of this positive working relationship is that the Cayman Islands has been recognized for decades as a strong international partner in combatting corruption, money-laundering and tax evasion