Financial Crime World

Title: Cayman Islands’ Three-Year Strategy to Strengthen Financial Crime Prevention Measures

Introduction

The Cayman Islands Anti-Money Laundering Steering Group has announced a new three-year strategy (2022-2025) aimed at bolstering the jurisdiction’s efforts against money laundering, terrorist financing, and proliferation financing. This strategy reflects the risks identified in the 2021 National Risk Assessment and international obligations.

Overview of the 2022-2025 Strategy

  • Enhancing the Jurisdiction’s AML/CFT Legal and Regulatory Framework

    • Modernize legislative framework
    • Adhere to FATF standards
    • Counteract various financial crimes

  • Implementing a Comprehensive Risk-based Supervisory Framework

    • Assess and address risks in specific sectors
    • Financial sector and DNFBPs
    • Risk-based approach

  • Strengthening of Sanctions, Intelligence, Enforcement, and Asset Recovery

    • Effective mechanisms for sanctions, intelligence, law enforcement, and asset recovery

  • Enhancing Domestic Cooperation and Coordination

    • Improve communication and collaboration among authorities, law enforcement, and private sector

  • Ensuring an Efficient and Effective System for International Cooperation

    • Strengthen Cayman Islands’ ability to collaborate with other jurisdictions

  • Raising AML/CFT/CFP Awareness among All Stakeholders and the General Public

    • Communicate importance of AML/CFT/CFP measures
    • Raise public awareness of risks and consequences

  • Strengthening the Beneficial Ownership Transparency Framework

    • Enhance framework for greater accountability
    • Effective implementation of beneficial ownership requirements

Key Components of the Strategy

The Cayman Islands aims to have a modern, risk-based legislative framework that aligns with international standards and effectively tackles money laundering, terrorist financing, and proliferation financing risks.

2. Implementing a Comprehensive Risk-based Supervisory Framework

This objective focuses on assessing and addressing risks in various sectors, specifically the financial sector and DNFBPs, utilizing a risk-based approach.

3. Strengthening of Sanctions, Intelligence, Enforcement, and Asset Recovery

bolster existing mechanisms for sanctions, intelligence gathering, law enforcement, and asset recovery to effectively tackle financial crimes.

4. Enhancing Domestic Cooperation and Coordination

Improve communication, collaboration, and coordination among various competent authorities, law enforcement agencies, and the private sector to effectively detect, prevent, and respond to financial crimes.

5. Ensuring an Efficient and Effective System for International Cooperation

Strengthen the Cayman Islands’ ability to collaborate with other jurisdictions in international efforts against money laundering, terrorist financing, and proliferation financing.

6. Raising AML/CFT/CFP Awareness among All Stakeholders and the General Public

Effectively communicate the importance of AML/CFT/CFP measures to all relevant stakeholders and raise public awareness of the risks and consequences of financial crimes.

7. Strengthening the Beneficial Ownership Transparency Framework

Initiatives to further enhance the beneficial ownership transparency framework to ensure greater accountability and effective implementation of beneficial ownership requirements.

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