Financial Crime World

AMENDMENTS TO CAYMAN ISLANDS ANTI-MONEY LAUNDERING REGULATIONS

The Cayman Islands Government has announced a series of amendments to the Anti-Money Laundering Regulations, aimed at strengthening the country’s anti-money laundering and combating the financing of terrorism (AML/CFT) framework.

New Requirements for Batch Files

As part of the amendments, batch files submitted to the Financial Intelligence Authority (FIA) will now be required to contain specific information about each beneficiary, including:

  • Name
  • Account number or unique identifier

This is designed to improve transparency and traceability in financial transactions.

Expanded Definition of Proliferation Financing

The definition of proliferation financing has been expanded to include:

  • Terrorist financing
  • Proliferation financing

This change aims to enhance the effectiveness of AML/CFT measures in preventing the misuse of financial systems for illicit purposes.

Enhanced Disclosure Requirements for Financial Institutions

Financial institutions carrying out relevant financial business will be required to disclose more information, including:

  • Details about their ownership and control structure
  • Additional details as requested by regulatory authorities

This is designed to improve transparency and facilitate supervision by regulatory authorities.

New Requirement for DNFBPs to Provide Information

Designated Non-Financial Businesses and Professions (DNFBPs) will now be required to provide:

  • Documents, statements or other information as requested by the FIA
  • To determine if they are carrying out relevant financial business

This new requirement aims to enhance the effectiveness of AML/CFT measures in preventing the misuse of financial systems for illicit purposes.

Changes to Regulations 55B and 55E

Regulation 55B has been repealed and replaced with a new regulation that designates specific bodies as Supervisory Authorities for DNFBPs. Regulation 55E has also been amended to require DNFBPs to maintain additional information in their registers, including:

  • The name and address of beneficial owners

New Requirement for DNFBPs to Notify Supervisory Authority

DNFBPs will now be required to notify the FIA of any changes to their risk assessment or other relevant information within 30 days.

This new requirement aims to enhance the effectiveness of AML/CFT measures in preventing the misuse of financial systems for illicit purposes.

Effective Date

The amendments come into effect on [date] and are designed to strengthen the country’s AML/CFT framework, improve transparency and traceability in financial transactions, and prevent the misuse of financial systems for illicit purposes.