Financial Crime World

Cayman Islands Shines Again: Removed from FATF and EU High-Risk Lists

A Significant Achievement for the British Overseas Territory

The Cayman Islands, a British overseas territory, made headlines on 13th February, 2024 with its successful removal from the Financial Action Task Force (FATF) list of countries requiring enhanced anti-financial crime measures. This milestone represents a significant shift in the global perception of the jurisdiction, marking a long-awaited turnaround from years of scrutiny.

FATF Delisting and EU Exclusion

The Cayman Islands’ achievement goes beyond FATF delisting, as it also results in the jurisdiction’s removal from the European Union’s (EU) list of high-risk nations concerning Anti-Money Laundering (AML), Counter-Terrorist Financing (CTF), and Counter-Proliferation Financing (CPF) deficiencies. This decision, announced last week, underscores the jurisdiction’s dedication to addressing vulnerabilities in its financial regulatory framework.

Background: Previous Blacklisting Challenges

In the past, the Cayman Islands faced FATF blacklisting due to concerns over insufficient prosecution and sanctions mechanisms in the fight against financial crimes. This designation carried heavy consequences, damaging the jurisdiction’s standing in the international financial community.

Over the course of more than two years, diplomatic efforts and legislative amendments were paramount in overcoming these challenges. Addressing issues highlighted by FATF and the EU, including those stemming from the CONCACAF scandal, were pivotal in alleviating concerns.

Economic Implications

The removal of the Cayman Islands from these watchlists is anticipated to have substantial implications for its offshore industry. With newly-regained confidence in its regulatory framework, the jurisdiction envisions a resurgence in its financial sector. This development strengthens the Cayman Islands’ reputation and enhances its allure as a global financial hub.

  • FATF delisting
  • EU exclusion
  • Renewed confidence in regulatory framework
  • Resurgence in financial sector
  • Strengthened reputation as a global financial hub.