Financial Crime World

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Cayman Islands Moves to Strengthen Anti-Money Laundering Regulations

The Cayman Islands has launched a new strategy aimed at bringing the Travel Rule into effect, enhancing its anti-money laundering (AML) regulations and protecting the financial system from criminal activities.

Background

The move comes on the back of a recent National Risk Assessment (NRA), which highlighted the need for further improvements in the country’s AML/CFT/CFP (Combating Financing of Terrorism and Proliferation) regime. The assessment revealed that while significant progress has been made in addressing sectoral risks, more needs to be done to refine technological tools and retool capacity to enhance supervision.

Progress Made

The Cayman Islands has implemented several measures since the 2015 NRA and 2017 Mutual Evaluation Report (MER), including achieving full compliance with the Financial Action Task Force’s (FATF) 40 Recommendations. The country has also overhauled its legislative framework, extended AML/CFT/CFP regime coverage to new sectors, and strengthened domestic cooperation and coordination.

Challenges Identified

The NRA identified human and technological resource challenges across agencies with critical AML/CFT/CFP mandates. To address these risks, the government has launched a strategy aimed at enhancing the jurisdiction’s AML/CFT legal and regulatory framework.

Key Objectives and Actions

  • Securing a modern risk-based legislative framework that is consistent with international standards
  • Improving financial intelligence and increasing proactive requests to overseas Financial Intelligence Units (FIUs)
  • Enhancing technological tools and human resources to support AML/CFT/CFP supervision

Minister’s Comments

“The Cayman Islands is committed to staying ahead of the curve in anti-money laundering regulations,” said [Name], Minister of Financial Services & Commerce. “We recognize that the Travel Rule is a critical step in preventing criminal activities and protecting our financial system. We are working closely with stakeholders to implement this new strategy and ensure the continued integrity of our financial sector.”

Progress Achieved

The Cayman Islands has already made significant progress in confiscating assets valued at over US$10 million and conducting nine asset restraints worth over US$520 million. The government is committed to continuing this work and ensuring that its AML/CFT/CFP regime remains robust and effective.

Governor’s Comments

“We are confident that our new strategy will help us achieve our goals and maintain the Cayman Islands’ reputation as a responsible financial jurisdiction,” said [Name], Governor of the Cayman Islands. “We look forward to working with stakeholders and international partners to ensure the continued success of our AML/CFT/CFP regime.”