Revised Anti-Money Laundering Regulations Introduced in Cayman Islands
Combating Financial Crimes with Stronger Regulation
The Cayman Islands government has implemented revised anti-money laundering regulations aimed at preventing and combating financial crimes, including money laundering and terrorist financing. The new regulations came into effect on December 31st, 2019.
Key Definitions and Roles Clarified
The revised regulations define key terms such as:
- Designated Non-Financial Business or Profession (DNFBP): A natural or legal person designated by regulation 55A.
- Discretionary Fine: A proposed fine for which a supervisory authority has the discretion to decide whether to impose it and the amount of the fine.
- Financial Group: Defined in the regulations.
The revised regulations also clarify the roles of:
- Supervisory Authorities: The power to impose fines for non-compliance with anti-money laundering regulations.
- Financial Institutions: Responsibilities in preventing money laundering and terrorist financing.
- Individuals: Roles in preventing financial crimes.
New Definitions Introduced
The regulations introduce new definitions for:
- Family Member: Spouse, parent, sibling, or child of a politically exposed person.
- Former DNFBP: An individual who has ceased to carry on business as a DNFBP.
Other key terms defined include:
- Established Business Relationship: A business relationship where a financial institution has obtained satisfactory evidence of the identity of an applicant.
- Intermediary Payment Service Provider: A payment service provider that participates in the execution of transfers of funds but is neither the payer nor the payee.
Maintaining Financial System Integrity
The Cayman Islands government emphasizes the importance of these revised regulations in combating financial crimes and maintaining the integrity of the financial system. The regulations are designed to ensure that all financial institutions and individuals operating in the country comply with international standards for anti-money laundering and terrorist financing prevention.
Stay Tuned for More Updates on this Story
Note: This rewritten article is a media-style piece, condensed and reorganized to make it easier to read and understand. The original text was too lengthy and dense, so some details were omitted and certain sections were rephrased to make the information more accessible to a general audience.