AML/CFT Regulations by Country: An Update on the Cayman Islands’ Revised Regulations
In January 2023, the Cayman Islands Anti-Money Laundering Regulations (AMLR) underwent a significant revision, consolidating three sets of prior amendments made throughout 2020. This update provides clarity and consistency in anti-money laundering (AML) and counter-terrorism financing (CFT) requirements for persons carrying on relevant financial business in the Cayman Islands.
Key Amendments
- The removal of the Anti-Money Laundering Steering Group (AMLSG) list of countries deemed to have equivalent AML regimes
- Financial institutions must conduct their own risk assessments for each country or geographic area where customers or applicants reside or operate
- Specific requirements for assessing the risk of money laundering or terrorist financing in a particular country or geographic area
Assessing Risk
Financial institutions are now required to consider credible sources related to:
- Money laundering
- Terrorist financing
- Proliferation financing
- Corruption
- Other criminal activities
when conducting risk assessments.
Virtual Asset Transfers
Identification and record-keeping requirements for virtual asset transfers came into effect on July 1, 2022. These regulations impose obligations to:
- Collect and record specified information in respect of virtual asset transfers
- Include details relating to originators and beneficiaries
Additional Amendments
- Prescribed content requirements for eligible introducer assurance letters
- Updated definition of “family member” (in the context of Politically Exposed Persons)
Expert Guidance
For further guidance on AML/CFT regulations by country, Ogier’s Regulatory team is well-equipped to provide expert advice. With extensive experience advising funds and regulated entities in the Cayman Islands on anti-money laundering matters, Ogier can assist with operational implementation of AML programs and ensure compliance with legal requirements.
Get in Touch
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