Financial Crime World

Title: Cayman Islands Strengthens Anti-Money Laundering Defenses: AML/CFT Strategy 2019-2022

Introduction

The Cayman Islands, a leading international financial services center, has recently released its updated Anti-Money Laundering (AML) and Counter Terrorist Financing (CTF) strategy for the period 2019-2022. In this article, we discuss the key aspects of this strategic blueprint.

Background

The strategy is a response to the findings of risk assessments and the recommendations from the Caribbean Financial Action Task Force (CFATF) Mutual Evaluation Report published in March 2019. Premier Alden McLaughlin expressed the government’s commitment to a robust AML/CFT/Counter Proliferation Financing (CPF) framework in his foreword.

Achievements Since the Last Assessment

McLaughlin underlined the successful strides the country has made since its last assessment by CFATF in December 2017. Some examples of these achievements are:

  • Creation of a regulatory authority for the legal profession
  • Expansion of supervision to non-profit organizations
  • Establishment of new inter-agency bodies to enforce greater cooperation and coordination

Strategic Themes

The strategy encompasses the following six strategic themes aimed at strengthening the Cayman Islands’ AML/CFT/CFP framework:

  • Enhance legislation to better combat money laundering, terrorist financing, and proliferation financing
  • Ensure comprehensive coverage of all relevant sectors
  • Implement AML/CFT/CFP policies consistent with the risks identified

2. Comprehensive Risk-Based Supervisory Framework

  • Enhance the effectiveness of risk evaluation and assessment methodologies
  • Strengthen the monitoring and reporting requirements of regulated entities
  • Encourage a culture of compliance and pro-activity among regulated entities

3. Sanctions, Intelligence, Investigation, Enforcement, and Asset Recovery

  • Develop a comprehensive approach towards financial intelligence unit analysis and reporting
  • Enhance the investigative capabilities of law enforcement agencies
  • Increase transparency in the enforcement process
  • Facilitate cooperation with international partners in asset recovery cases

4. Domestic Cooperation and Coordination

  • Enhance communication and coordination among key stakeholders
  • Strengthen public-private partnerships
  • Enhance the capacity of relevant agencies

5. International Cooperation

  • Foster global cooperation and coordination through bilateral and multilateral agreements
  • Develop a strong international network and partnerships
  • Establish mutual legal assistance and extradition treaties

6. Awareness and Training

  • Provide ongoing training and awareness programs for stakeholders
  • Develop and implement a public awareness campaigns
  • Foster a culture of AML/CFT/CFP compliance among the general public

Conclusion

In conclusion, the Cayman Islands Anti-Money Laundering and Counter Terrorist Financing Strategy 2019-2022 represents the country’s commitment to keeping abreast of global best practices and continuously improving its regulatory and operational frameworks in the fight against financial crimes.