Given the global push for cross-border information sharing and transparency, the recent repeal of the Cayman Islands’ Confidential Relationships (Preservation) Law (2015 Revision) (the Law) and the introduction, in July 2016, of its replacement – the Confidential Information Disclosure Law, 2016 (the CIDL) – have been the subject of much international interest.
The Law, which operated to protect the confidentiality of information pertaining to certain commercial activities and business dealings taking place in the Cayman Islands, had, for many years, been referred to colloquially, and perhaps somewhat unfairly, as ‘Cayman’s secrecy law’. Its repeal has, in some quarters at least, been heralded as the beginning of the end for the protection of confidential information in offshore financial centres, and a gateway to the wholesale sharing of any and all information between the Cayman Islands and other jurisdictions.
However, this is not the case. The CIDL in fact reflects a concerted effort by local lawmakers to cooperate with global transparency initiatives in respect of certain categories of confidential information, while still allowing for the important protections given to that information in the Cayman Islands, both by statute and common law.
News source: Conyers Dill & Pearman