Cayman Islands Tightens Noose on Money Laundering with 2024 Amendment Regulations
The Cayman Islands government has published new regulations aimed at strengthening its fight against money laundering, terrorist financing, and proliferation financing. The Anti-Money Laundering (Amendment) Regulations, 2024, came into effect on April 19, 2024, introducing key amendments to improve the country’s defenses against illicit financial activities.
Clarifying Definitions and Responsibilities
The revised regulations aim to clarify definitions within the framework, including references to:
- Proliferation financing: The new rules provide clarity on this concept, enabling competent authorities to better identify and address related risks.
- Competent authorities: The responsibilities of these authorities have been clarified, ensuring they are equipped to effectively oversee anti-money laundering measures.
Enhanced Risk Assessments and Controls
The amendments require financial institutions to:
- Conduct thorough risk assessments to identify, assess, and understand money laundering, terrorist financing, and proliferation financing risks.
- Implement policies and controls to mitigate these threats.
Customer Due Diligence and Record-Keeping Requirements
The new regulations introduce enhanced customer due diligence measures, including:
- Proliferation financing mitigation: Institutions must manage and mitigate identified risks related to proliferation financing.
- Record-keeping requirements: Financial institutions must maintain records of transactions, suspicious activities, and information sharing with competent authorities.
Supervision and Penalties
The designation and duties of Supervisory Authorities for designated non-financial businesses and professions (DNFBPs) have been clarified and expanded. The revised penalties for non-compliance include:
- Administrative fines: Individuals and entities involved in contraventions are now liable to these penalties.
Accessing the Regulations
The Anti-Money Laundering (Amendment) Regulations, 2024 can be accessed through the government’s official website.
Conclusion
The move is seen as a major step forward in Cayman Islands’ efforts to maintain its reputation as a responsible financial center and prevent the misuse of its financial system for illicit activities.