It still is, of course, but in recent years it has increasingly been overridden and the focus has been on transparency, openness and access to information. To the point where in the Cayman Islands the existence of a law from the 1970s aimed at preserving confidentiality had become a stick for offshore-bashers and an awkward anachronism, no longer consistent with Cayman’s position at the forefront of the global move towards transparency, cooperation, mutual assistance and information-sharing with other countries.

The Confidential Relationships (Preservation) Law, originally enacted in 1976, did not intend to widen the ambit of duties of confidentiality (though it arguably did so through imprecise drafting), but sought to reinforce them by imposing criminal penalties for the disclosure of confidential information.

Despite the fact that noone in the 40 years of the law’s existence was ever prosecuted, it did have a certain deterrent effect, and had been reported far and wide as Cayman’s “banking secrecy law.”

Although the only one of its provisions that was ever regularly used was in fact a section authorising disclosure, it was regularly cited by those pursuing a political agenda hostile to international financial centers, as evidence that Cayman was a “secrecy jurisdiction” and a tax haven.

It had to go. So in July 2016, the Confidential Information Disclosure Law, 2016, came into force to repeal and replace the old law — a change widely welcomed by Cayman’s legal and financial services community.

Read More

Twitter LinkedIn Email Save as PDF
More Publications
27 Sep 2022

Similar but Different

While the basic features of the trust remain, there are some notable differences in how trusts can b...

30 Aug 2022

The Cayman Islands restructuring officer regime comes into force on 31 August 2022

These new proceedings will significantly enhance the Cayman Islands restructuring regime.

4 Aug 2022

Norwich Pharmacal orders: the right medicine for third party disclosure of information and documents in the Cayman Islands

A Norwich Pharmacal order (NPO) is a disclosure order available in the Cayman Islands to compel a th...

Contributors: Susan Fallan
1 Jun 2022

The 2022 Cayman Islands Real Estate Guide

The Real Estate 2022 guide provides the latest legal information on the impact of disruptive technol...

Contributors: Norman Klein
28 Apr 2022

Restructuring the offshore debt of Chinese Real Estate Developers

This article sets out how the current regimes in the Cayman Islands and the BVI can assist with rest...

Contributors: Crystal Au-Yeung
28 Apr 2022

Assignment, novation or sub-participation of loans             

Transfers of loan portfolios between lending institutions have always been commonplace in the financ...

26 Jan 2022

Appleby contributes four chapters to Global Legal Insights – Fund Finance 2022: Cayman Islands

2021 has been an incredibly impressive year for the global subscription credit and fund finance mark...

Contributors: Georgina Pullinger
27 Oct 2021

We hope this registers! A summary of Cayman corporate and partnership registers in a finance transaction.

Because we know that it can be a little befuddling, Appleby has set out a guide to the various Cayma...

7 Oct 2021

Regulatory Round-Up: Cayman Islands Q3 2021

Appleby Cayman’s Our latest Regulatory updates for the Cayman Islands up to Q3 2021.

13 Sep 2021

Loans & Secured Financing in the Cayman Islands 2021

First published in Getting the Deal Through 2021. This practice guide provides topical analysis of L...

Contributors: Alexandra Simpson