Comprehensive Guide to Anti-Money Laundering (AML) in the Cayman Islands

The Cayman Islands has implemented a robust Anti-Money Laundering (AML) regime to prevent and combat money laundering, proliferation financing, and terrorist financing. This guide outlines the key responsibilities and obligations of Financial Services Providers (FSPs), their Anti-Money Laundering Compliance Officer (AMLCO), Money Laundering Reporting Officer (MLRO), and Designated Money Laundering Reporting Officer (DMLRO).

Key Points from the Guide

• FSPs must implement measures to prevent money laundering, proliferation financing, and terrorist financing. This includes:
  • Client due diligence
  • Transaction monitoring
  • Reporting suspicious activity

The Role of the AMLCO

The Anti-Money Laundering Compliance Officer (AMLCO) is responsible for ensuring compliance with AML regulations, overseeing the compliance function, and acting as the point of contact with regulatory authorities.

Delegation of AML Obligations

FSPs can delegate or outsource certain AML obligations, but this must be done carefully to ensure the service provider is fit and proper and adopts Cayman Islands AML standards.

Staff Awareness and Training

FSPs must ensure staff are aware of their AML obligations, can recognize suspicious activity, and act on it properly. This includes regular training and refresher courses.

Enforcement Powers

CIMA has the power to impose administrative fines up to CI$1 million for breaches of the Regulations.

Conclusion

The Cayman Islands AML regime is designed to prevent money laundering, proliferation financing, and terrorist financing. FSPs must be fully aware of their responsibilities and obligations under this regime to ensure compliance with regulations.