In the Cayman Islands we were once blessed with common sense regulations that were easy to understand and were pivotal to being blessed with charities. We rely heavily upon them and without their existence the welfare of our poor and destitute, our homeless and animals, etc. would be in more serious at risk than even now.

Churches carry a considerable burden in this regard as they administer to everyone who comes through their doors.

Now we have a new law where charities and section 80 companies that meet the legal definition of non-profit organisations (NPOs) have to be registered.

To give this unnecessary Draconian requirement some reason for implementation our government gives this explanation:

“The legal requirement for NPOs to be registered further aligns Cayman with global regulatory standards, which recognise that financial crimes, such as money laundering, can occur through non-profit organisations.”

Note: ‘such as MONEY LAUNDERING.’ Couple that with:

“An entity is deemed to be an NPO if it is a company or body of persons, whether incorporated or unincorporated, or a trust, that is:
established, or which identifies itself, as established primarily for the promotion of charitable, philanthropic, religious, cultural, educational, social or fraternal objectives, or other activities or programmes for the public benefit or a section of the public within the Islands or elsewhere; and
which solicits contributions from the public or a section of the public within the Islands or elsewhere.”

Can you provide another example compared to MONEY LAUNDERING where, for example, “religious, cultural, educational, social” entities are or ever have tried to launder money unless the money has been left forgotten in someone’s pocket and placed in a machine to wash?

And take heed of this:

“There are also penalties for charities if they do not register and continue to operate as an NPO after the 31 July registration deadline. They will face a $500 penalty fee for noncompliance, plus $10 for every day beyond 1 August 2018 that they fail to apply for registration, up to a maximum fine of $2,500. Additional criminal sanctions may apply to entities continuing to operate past the deadline without registering.”

Why, therefore, would anyone want to continue with providing charitable assistance let alone start one up?

Then there is the cost to police this regulation.

It is beyond my comprehension why some common sense wasn’t used before this over zealous and costly charitable regulatory law was forced on us, despite the warnings.

When regulating home financing in the USA with unnecessary over regulations that included mortgage options, eligibility standards, and even the structure and schedule of payments has caused mortgage lending to be at its lowest level in 17 years.

With less charities and the ones left that have to pay accountants to monitor their good works and file with the Cayman Authorities the strain already on our social services is going to break its back.

Mark my words.