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Trust company's £550,000 fine demonstrates importance of effective and consistent AML procedures
Ogier
  • White Collar Crime
  • Jersey
  • 19 April 2021

The Royal Court recently imposed a hefty £550,000 fine on a firm for failing to ensure that, in practice, its anti-money laundering (AML) policies and procedures were being applied effectively and consistently. Notably, the Royal Court was not deterred from imposing a fine by the fact that the failings related to only one client structure. Firms must therefore ensure that their AML controls are being applied effectively across their entire business – for, as this judgment shows, the cost of failing to do so can be high.

Director disqualification: 12-year disqualification penalty imposed
Ogier
  • Corporate & Commercial
  • Guernsey
  • 19 April 2021

When considering the penalties imposed on directors of Guernsey companies for misconduct or breaches of the Companies (Guernsey) Law 2008, arguably the most serious penalty which can be imposed is a disqualification order. Such an order can, at its highest, be career ending for a director, with the maximum period of disqualification being 15 years. This article examines a recent decision in which the Royal Court imposed a disqualification period of 12 years.

Snapshot: notification injunctions
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 15 April 2021

A notification injunction is an alternative to the conventional freezing order that is available where there is concern that a respondent may deal with their assets so as to frustrate the enforcement of any future judgment. This new breed of quia timet 'notification' injunction is to be welcomed: it represents a further weapon in the Cayman court's arsenal to assist litigants, particularly in fraud and asset tracing cases, to prevent the frustration of judgments.

Trust company's £550,000 fine demonstrates importance of effective and consistent AML procedures
Ogier
  • Private Client & Offshore Services
  • Jersey
  • 15 April 2021

The Royal Court recently imposed a hefty £550,000 fine on a firm for failing to ensure that, in practice, its anti-money laundering (AML) policies and procedures were being applied effectively and consistently. Notably, the Royal Court was not deterred from imposing a fine by the fact that the failings related to only one client structure. Firms must therefore ensure that their AML controls are being applied effectively across their entire business – for, as this judgment shows, the cost of failing to do so can be high.

Director disqualification: 12-year disqualification penalty imposed
Ogier
  • Private Client & Offshore Services
  • Guernsey
  • 15 April 2021

When considering the penalties imposed on directors of Guernsey companies for misconduct or breaches of the Companies (Guernsey) Law 2008, arguably the most serious penalty which can be imposed is a disqualification order. Such an order can, at its highest, be career ending for a director, with the maximum period of disqualification being 15 years. This article examines a recent decision in which the Royal Court imposed a disqualification period of 12 years.

Snapshot: 'momentous decision' applications by trustees
Ogier
  • Litigation
  • Guernsey
  • 13 April 2021

The terms of a trust deed will usually extend the powers conferred on trustees by the Trusts (Guernsey) Law 2007. When deciding to exercise these powers, trustees must consider all of their legal and fiduciary obligations. However, it is not always that simple; at some point a trustee will be faced with a decision so important or complex that it wishes to seek the blessing of the Royal Court. In Guernsey, such applications are known as 'momentous decision' or 'blessing' applications.

Royal Court intervenes to set aside trustee decision
Ogier
  • Litigation
  • Jersey
  • 13 April 2021

In a recent case, the Royal Court intervened to set aside a decision of the trustee not to make the spouse of the settlor a beneficiary in her own right. The court's decision has implications for trustees and their obligation to act reasonably despite the trustee setting out reasons for its original decision.

Economic substance requirements: overview
Ogier
  • Corporate Tax
  • Cayman Islands
  • 09 April 2021

The International Tax Cooperation (Economic Substance) Act reflected the Cayman Islands' commitment to its obligations as a member of the Organisation for Economic Cooperation and Development's global Base Erosion and Profit Shifting Inclusive Framework and corresponding EU requirements for no or nominal tax jurisdictions. This article summarises the key elements of the act and draws upon guidance issued by the Tax Information Authority.

Royal Court intervenes to set aside trustee decision
Ogier
  • Private Client & Offshore Services
  • Jersey
  • 08 April 2021

In a recent case, the Royal Court intervened to set aside a decision of the trustee not to make the spouse of the settlor a beneficiary in her own right. The court's decision has implications for trustees and their obligation to act reasonably despite the trustee setting out reasons for its original decision.

Economic substance requirements: overview
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 08 April 2021

The International Tax Cooperation (Economic Substance) Act reflected the Cayman Islands' commitment to its obligations as a member of the Organisation for Economic Cooperation and Development's global Base Erosion and Profit Shifting Inclusive Framework and corresponding EU requirements for no or nominal tax jurisdictions. This article summarises the key elements of the act and draws upon guidance issued by the Tax Information Authority.

Snapshot: 'momentous decision' applications by trustees
Ogier
  • Private Client & Offshore Services
  • Guernsey
  • 08 April 2021

The terms of a trust deed will usually extend the powers conferred on trustees by the Trusts (Guernsey) Law 2007. When deciding to exercise these powers, trustees must consider all of their legal and fiduciary obligations. However, it is not always that simple; at some point a trustee will be faced with a decision so important or complex that it wishes to seek the blessing of the Royal Court. In Guernsey, such applications are known as 'momentous decision' or 'blessing' applications.

Short-form mergers: Changyou.com judgment confirms appraisal rights
Ogier
  • Corporate Finance/M&A
  • Cayman Islands
  • 07 April 2021

The Grand Court has confirmed that shareholders of companies that effect a short-form merger pursuant to Section 233(7) of Part XVI of the Companies Act (2021 Revision) are entitled to be paid the fair value of their shares on dissenting from the merger under Section 238 of the act. The eagerly awaited judgment in Changyou.com clarifies an issue which was previously the subject of extensive debate and provides welcome certainty to minority shareholders of Cayman companies.

Short-form mergers: Changyou.com judgment confirms appraisal rights
Ogier
  • Litigation
  • Cayman Islands
  • 06 April 2021

The Grand Court has confirmed that shareholders of companies that effect a short-form merger pursuant to Section 233(7) of Part XVI of the Companies Act (2021 Revision) are entitled to be paid the fair value of their shares on dissenting from the merger under Section 238 of the act. The eagerly awaited judgment in Changyou.com clarifies an issue which was previously the subject of extensive debate and provides welcome certainty to minority shareholders of Cayman companies.

Short-form mergers: Changyou.com judgment confirms appraisal rights
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 01 April 2021

The Grand Court has confirmed that shareholders of companies that effect a short-form merger pursuant to Section 233(7) of Part XVI of the Companies Act (2021 Revision) are entitled to be paid the fair value of their shares on dissenting from the merger under Section 238 of the act. The eagerly awaited judgment in Changyou.com clarifies an issue which was previously the subject of extensive debate and provides welcome certainty to minority shareholders of Cayman companies.

Wills and probate law and COVID-19: current state of play
Ogier
  • Private Client & Offshore Services
  • Jersey
  • 25 March 2021

Despite the various challenges arising from COVID-19 restrictions, individuals and businesses have shown resilience and an ability to swiftly adapt in order to make the most of the new reality – and Jersey has been no different. In particular, the States of Jersey were among the first in the world to introduce new wills and probate legislation as a direct result of the impact of the pandemic.

Estate experiences: administering an estate with Cayman assets
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 25 March 2021

In every case of an individual dying leaving assets in the Cayman Islands, some form of grant must be obtained in order for the Cayman assets to be legally administered. The Cayman Islands as a jurisdiction has a robust framework for resolving estate disputes. The availability of professional trustee service providers to be appointed as personal representatives and who can draw on their substantial executor and trusts experience in complex estates is also a huge advantage.

Commencing proceedings against a Cayman company in liquidation: having a case worth entertaining
Ogier
  • Litigation
  • Cayman Islands
  • 23 March 2021

The Grand Court recently considered the statutory moratorium against commencing proceedings against a Cayman company in liquidation. The court held that a plaintiff which launches originating proceedings against a company in liquidation, seeking adverse orders against that company, requires leave of the court to bring the proceedings. It also held that the plaintiffs in this case did not have "a case worth entertaining" in respect of either basis on which they had brought their applications.

Commencing proceedings against a Cayman company in liquidation: having a case worth entertaining
Ogier
  • Insolvency & Restructuring
  • Cayman Islands
  • 19 March 2021

The Grand Court recently considered the statutory moratorium against commencing proceedings against a Cayman company in liquidation. The court held that a plaintiff which launches originating proceedings against a company in liquidation, seeking adverse orders against that company, requires leave of the court to bring the proceedings. It also held that the plaintiffs in this case did not have "a case worth entertaining" in respect of either basis on which they had brought their applications.

Restructuring and insolvency guide
Ogier
  • Insolvency & Restructuring
  • Guernsey
  • 19 March 2021

This article answers key questions regarding restructuring and insolvency in Guernsey. In particular, it covers domestic procedures, cross-border procedures, creditors, avoidance transactions and contributions to the liquidation estate and liability of officers.

Commencing proceedings against a Cayman company in liquidation: having a case worth entertaining
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 18 March 2021

The Grand Court recently considered the statutory moratorium against commencing proceedings against a Cayman company in liquidation. The court held that a plaintiff which launches originating proceedings against a company in liquidation, seeking adverse orders against that company, requires leave of the court to bring the proceedings. It also held that the plaintiffs in this case did not have "a case worth entertaining" in respect of either basis on which they had brought their applications.