Financial Crime World

Cayman Islands Unveils Ambitious Three-Year Strategy to Combat Financial Crime

The Cayman Islands Anti-Money Laundering Steering Group has launched a comprehensive three-year strategy (2022-2025) aimed at bolstering the jurisdiction’s efforts against money laundering, terrorist financing, and proliferation financing.

Overview of the Strategy

The strategy is designed to address the risks identified in the 2021 National Risk Assessment and meet international obligations. The Cayman Islands’ new strategy focuses on:

  • Enhancing its legal and regulatory framework
  • Implementing a risk-based supervisory approach
  • Strengthening sanctions, intelligence, enforcement, and asset recovery mechanisms
  • Improving domestic cooperation and coordination
  • Ensuring efficient international cooperation
  • Raising awareness among stakeholders and the general public
  • Strengthening the beneficial ownership transparency framework

Key Components of the Strategy

The key components of the strategy include:

  • Modernizing the AML/CFT legal and regulatory framework: Aligning with international standards to ensure a robust and effective regime.
  • Risk-based approach: Assessing and addressing risks in various sectors, including financial institutions, real estate, and other high-risk industries.
  • Sanctions and intelligence gathering: Bolstering existing mechanisms for sanctions, intelligence gathering, law enforcement, and asset recovery.
  • Communication and collaboration: Improving communication and collaboration among authorities, law enforcement agencies, and the private sector.

International Cooperation and Awareness

The Cayman Islands aims to:

  • Strengthen international cooperation: Collaborate with other jurisdictions in international efforts against money laundering, terrorist financing, and proliferation financing.
  • Raise awareness: Raise awareness of the importance of AML/CFT measures among all stakeholders, including financial institutions, lawyers, accountants, and the general public.
  • Enhance beneficial ownership transparency: Strengthen the beneficial ownership transparency framework to ensure greater accountability and effective implementation of beneficial ownership requirements.

Goal of the Strategy

By implementing this strategy, the Cayman Islands hopes to develop a world-class AML/CFT/CFP regime capable of effectively addressing money laundering, terrorist financing, and proliferation financing risks.