Cayman Islands Fortifies AML/CFT Framework with New Guidance Notes

The Cayman Islands Monetary Authority (CIMA) has updated its Guidance Notes on the Prevention and Detection of Money Laundering, Terrorist Financing, and Proliferation Financing. These notes aim to strengthen the jurisdiction’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework.

Key Resource for Financial Services Providers

The comprehensive Guidance Notes serve as a crucial resource for financial services providers in the Cayman Islands. They offer advice on anti-money laundering (AML) and counter-terrorist financing (CTF) best practices to ensure full compliance with international standards.

Consequences of Non-compliance

Failure to adhere to these Guidance Notes may be considered in Courts when determining any breach of the Proceeds of Crime Act or AMLR provisions. Additionally, CIMA may use non-compliance as a factor when assessing enforcement actions.

Recent Amendments

1. Guidance Notes (Amendment) - Securitization (May 2021)
2. Guidance Notes (Amendment) - Virtual Asset Service Providers (February 2021)
3. Guidance Notes (Amendment) - Targeted Financial Sanctions (February 2020)
4. Guidance Notes (Amendment) - Ongoing Monitoring (February 2020)
5. Guidance Notes (Amendment) - Assessing Risks and Applying a Risk-based Approach (February 2020)

Keeping Up with International Developments

By integrating the latest international developments, the Cayman Islands continues to enhance its AML/CFT regime and reaffirm its dedication to a robust and transparent financial services industry.