Digital ID Could be Game Changer for Hedge Funds in Cayman

While it is expected that the digital id regime will generally be useful for anyone who is deemed ordinarily resident in the Cayman Islands, it may be especially helpful for hedge funds when completing due diligence on Cayman-based service providers, especially natural persons who act as directors on Cayman-based funds. In fact, it could be a game changer in terms of the ease of doing business, efficiency and creating a trusted source for verification of data.

The Identification Register Bill, 2022 (published in the Cayman Islands Gazette on November 4, 2022 and open for public consultation), also contemplates that a registered person may authorise another person by way of a power of attorney to access the digital id register for the registered person.

In relation to this aspect of the digital id regime, Taron Jackman, a partner at Deloitte in the Cayman Islands, said that it “creates greater efficiency of services to the public by the government by having one source of truth and avoids duplication of effort by the public and the government.”

As an example of its functionality, the Cayman Islands Identification Card Bill, 2022 (which was published in the Cayman Islands Gazette on November 4, 2022 for public consultation), indicates that the digital id card can be used as a means of:

  • authenticating the individual’s identity, physically or digitally, as the individual or another person may require

  • accessing the identification information related to the individual held in the register

  • accessing information related to the individual by reference to the individual’s identification code

  • enabling an individual to authenticate or verify information recorded in an individual’s entry in the register or otherwise facilitating the provision of that information or connected information from other systems to a person

  • providing a secure and reliable means by which an individual’s identity can be digitally authenticated

  • allowing a registered person to share identification information with another party-Loop Cayman

Source: Loop Cayman