The United Kingdom is pushing its overseas territories, including offshore centers such as the British Virgin Islands and Cayman Islands, to publicly identify ultimate beneficial owners of corporate structures.
This loss of privacy for ultra-high-net-worth individuals with legitimate needs could see their reputations and interests threatened by unwarranted scrutiny.
Proper preparation can help individuals and their advisors to not only limit potential damage, but also allow them to react expediently if a crisis arises.
Judgment and award debtors often hold assets in offshore jurisdictions such as the BVI – but these places are notoriously creditor- and enforcement-friendly.
When cornered by a creditor, debtors often find few – if any – legal avenues to challenge the claim against them.
However, a recent Kobre & Kim victory in the BVI demonstrates that, through deep familiarity of and ability to connect both offshore and foreign law, debtors can defy conventional wisdom and succeed.
Many parties, especially those based in Asia Pacific, soon discover that a recalcitrant debtor can frustrate enforcement of a hard-won arbitration award.
In cross-border enforcement campaigns, the debtor may throw up obscure legal challenges to cause delays and distraction.
A recent Kobre & Kim victory demonstrates how, through quick and strategic action, these distractions can be defeated and pressure can be maintained on the debtor.
