Draft Non-Profit Organisations (Amendment and Validation) Bill 2026

Overview

This consultation invites feedback on the proposed amendments to the Non-Profit Organisations Act (2020 Revision). The amendments seek to strengthen the regulatory and monitoring framework for non-profit organisations (“NPOs”) in the Cayman Islands. The proposed changes are intended to enhance alignment of the jurisdictions NPO framework with international standards, particularly, the Financial Action Task Force (FATF) Recommendation 8, and support effective implementation of the requirements by the Registrar of Non-Profit Organisations and other competent authorities. These changes form part of the Cayman Islands Government’s ongoing commitment to maintaining an effective, risk-based framework that protects the integrity of the NPO sector while supporting legitimate charitable and non-profit activities.

Why take part? 

The Non-Profit Organisations Act (2020 Revision) requires enhancement that ensures the legislative framework remains effective, proportionate, and aligned with the FATF standards and risks relating to terrorist financing (TF) We are consulting to:

• Ensure the proposed amendments are informed by the views of stakeholders, including NPOs, service providers, and members of the public.
• Identify any potential unintended operational or compliance impacts on the sector. 
• Promote transparency and accountability in the legislative process. 
• Ensure that the amendments appropriately balance effective oversight with support for legitimate charitable and non-profit activities. 

Stakeholder feedback is important to ensure that the proposed measures are practical, proportionate, and responsive to the needs and realities of the NPO sector, in addition to being aligned with global standards.

Scope of Proposed Changes

The consultation seeks views on proposed amendments in the following key areas:

1. Risk-Based Monitoring
   • Strengthening the Registrar’s responsibilities to conduct periodic risk assessments of the NPO sector, and apply risk-based monitoring measures to NPOs’ compliance with their obligations under the Act.
2. Investigative and Monitoring Powers
   • Enhancing the Registrar’s authority to request information and inquire into suspected non-compliance.
3. Information Sharing
   • Strengthening the Registrar’s powers to, upon request, share information with Competent Authorities to enable them to respond to international requests concerning NPOs suspected of TF activities.
4. Governance and Financial Transparency
   • Enhancing the requirements for independent financial review for larger NPOs or NPOs sending significant funds outside the Islands to improve accountability and transparency.
5. Compliance and Enforcement Measures
   • Clarifying and strengthening administrative enforcement tools, and other measures to address non-compliance.
6. Guidance and Best Practices
   • Requiring the Registrar to provide guidance and promote best practices for NPO governance and mitigation of TF risks.

What Happens Next

Feedback received during this consultation will be reviewed and considered by the Office for Strategic Action on Illicit Finance (OSAIF), the General Registry and the Ministry of Financial Services and Commerce (MFSC), in finalising the proposed amendments to the NPO Act.

Responses may be submitted anonymously. Any personal information received will be handled in accordance with applicable data protection and confidentiality requirements. Information provided will be used solely for the purpose of informing the consultation process and legislative development.