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Cayman Islands Updates AML Guidance on E-KYC, Digital ID, and Remote Onboarding
The Cayman Islands Monetary Authority (CIMA) has updated its guidance notes on anti-money laundering (AML) and combating the financing of terrorism (CFT). The revised guidelines aim to streamline financial services and combat money laundering and terrorist financing.
Key Updates
- Effective August 2022, the updated guidance provides clarity on the use of electronic know-your-customer (e-KYC) processes and digital identification systems for remote onboarding of customers and monitoring of business relationships.
- Financial institutions can now use e-KYC processes and digital ID systems to verify customer identities, reducing the need for physical documents and face-to-face meetings.
E-KYC and Digital ID: A Game-Changer
The updated guidance allows financial institutions to:
- Use video-conferencing as an acceptable method of e-KYC
- Verify identity through “selfie” photographs, provided they meet specific requirements
- Use publicly available sources, such as company registries, to verify corporate legal persons
- Accept government-issued identification in electronic form, subject to risk-based approaches and suitable policies
Benefits
The updated guidance offers several benefits, including:
- Reduced time and cost associated with onboarding new customers
- Increased efficiency in monitoring business relationships
- Improved flexibility for financial institutions
Conclusion
The updated guidance from CIMA is a welcome development, offering financial institutions more flexibility and efficiency in onboarding customers and monitoring business relationships. The changes demonstrate CIMA’s commitment to keeping pace with global AML/CFT standards and recommendations.
If you require further advice or have any questions regarding the revised guidelines, please do not hesitate to contact our team of experts.