Cayman Islands MakeStrides in Anti-Money Laundering and Counter-Terrorist Financing Measures, According to CFATF Report
The Caribbean Financial Action Task Force (CFATF) has published the 2nd Enhanced Follow-Up Report on the Cayman Islands’ progress in implementing anti-money laundering (AML) and counter-terrorist financing (CTF) measures.
Evaluation of Cayman Islands’ Performance
The document was adopted during the CFATF’s February 2021 plenary session. It evaluates the Cayman Islands’ performance in meeting the recommendations of the Financial Action Task Force (FATF), with a focus on technical compliance. After a country request, 16 re-ratings have been granted concerning Recommendations 1, 2, 15, 18, 21, 22, 23, 24, 25, 26, 28, 29, 32, 34, and 35.
Key Improvements
The report highlights several key improvements made by the Cayman Islands in addressing technical compliance deficiencies:
- Improved supervision of lawyers, law firms, and real estate agents
- Strengthened risk-based approach to resource allocation and implementation of new requirements
Areas for Enhancement
Despite these advancements, areas where the Cayman Islands need to improve include:
- Conducting a comprehensive analysis of ML/TF risks associated with legal persons and arrangements
- Addressing deficiencies related to trusts and company service providers
Encouragement from CFATF
The CFATF report encourages the Cayman Islands to continue making progress in strengthening their AML/CTF regime and reaffirms its commitment to providing technical assistance.
Assessment Experts
The comprehensive assessment was conducted by Sherrece L. Saunders, Deputy Manager of the Bank Supervision Department at the Central Bank of The Bahamas, and Khalila W. Astwood, Principal Crown Counsel (International) from the Turks and Caicos Islands. The experts’ findings were supported by the CFATF Secretariat’s Mutual Evaluation Team.
Source: CFATF (2021)
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