Cayman Islands Strengthens Anti-Money Laundering Measures with 2024 Amendment Regulations

The Cayman Islands government has taken a significant step to combat money laundering, terrorist financing, and proliferation financing by publishing the Anti-Money Laundering (Amendment) Regulations, 2024. The amendments aim to enhance measures to identify, assess, and mitigate risks associated with these illicit activities.

Key Updates

• Revised Definitions: The regulations now incorporate references to proliferation financing and clarify the responsibilities of competent authorities.
• Risk Assessment Requirements: The revised requirements detail the need for identifying, assessing, and understanding money laundering, terrorist financing, and proliferation financing risks. This includes documentation, risk factor consideration, and implementation of appropriate policies and controls.
• Enhanced Customer Due Diligence Measures: DNFBPs (designated non-financial businesses and professions) are now required to:
  • Maintain records
  • Report suspicious activities
  • Share information with competent authorities
  • Implement proliferation financing considerations

Designation and Duties of Supervisory Authorities

• The designation and duties of Supervisory Authorities for DNFBPs have been clarified and expanded.

Penalties for Non-Compliance

• Revised penalties include:
  • Administrative fines
  • Penalties for individuals and entities involved in contraventions

Availability of the Regulations

The Anti-Money Laundering (Amendment) Regulations, 2024 are now available online.