Financial Crime World

Cayman Islands’ Anti-Money Laundering Unit: Leading the Fight Against Illegal Financing for Three Decades

The Cayman Islands’ Anti-Money Laundering Unit (AMLU), established in 2014, plays a significant role in the Caribbean and global efforts against money laundering, terrorism financing, andproliferation financing (AML/TF/PF). Situated at the operational level, AMLU acts as the secretariat for the Anti-Money Laundering Steering Group (AMLSG) and leads the Inter-Agency Coordination Committee (IACC) in the Cayman Islands.

A Firm Commitment to Eliminating Financial Crimes

The Cayman Islands, known as an international financial hub with a rich history, has been dedicated to abolishing financial crimes for almost 30 years. This commitment started in 1990 when the Cayman Islands played a key role in founding the Caribbean Financial Action Task Force (CFATF), upholding international standards set by the Financial Action Task Force (FATF).

Evaluations and Improvements

Throughout the years, the Cayman Islands underwent four assessments by the CFATF and acknowledged the insights gained into the jurisdiction’s efficiency in applying FATF standards. Following evaluations, jurisdictions usually enhance their regimes to respond to changing international standards, ensuring they remain effective against current and emerging threats.

Prioritizing Regional Threats

Adhering to these international guidelines safeguards the Cayman Islands from illicit activities and nurtures a business environment that entices and retains reputable businesses. In response to specific regional risks, Cayman Islands conducted risk assessments, identifying the following primary concerns:

  1. Theft, corruption, and drug trafficking originating within the Cayman Islands
  2. Fraud, tax evasion, and drug trafficking originating internationally

Addressing Unique Threats

Though tackling all AML/TF/PF threats is paramount, FATF standards mandate jurisdictions to prioritize those unique to their region. Cayman Islands has adopted a range of laws and regulations and offers guidance to help businesses comprehend and adhere to the AML/TF/PF framework suitably, consistently, and effectively.

Staying Ahead of the Curve

In the perpetually evolving landscape of financial crimes, the Cayman Islands’ dedication to addressing unique threats within their jurisdiction remains a top priority.