Title: Cayman Islands Cracks Down on Money Laundering, Terrorist Financing, and Proliferation Financing: AML Best Practices
The Cayman Islands Monetary Authority Issues New Guidance Notes to Strengthen Financial Systems
The Cayman Islands Monetary Authority (CIMA) has issued updated Guidance Notes on the Prevention and Detection of Money Laundering, Terrorist Financing, and Proliferation Financing, reaffirming the jurisdiction’s commitment to maintaining a robust financial system and protecting it from financial crimes.
International Commitment and Reputation
The release of the new Guidance Notes is part of the Cayman Islands’ commitment to international standards of supervision and cooperation with overseas regulatory authorities in the fight against criminal financing. The jurisdiction aims to uphold its reputation as a premier financial center, maintaining business competitiveness.
Requirements and Guidelines for Financial Service Providers (FSPs)
The Guidance Notes outline the requirements and provide guidelines for FSPs to maintain the integrity of the Cayman Islands’ financial sector in preventing and combating Money Laundering (ML), Terrorist Financing (TF), and Proliferation Financing (PF). These Notes are based on the AML/CFT legislation of the Cayman Islands and reflect the Financial Action Task Force’s (FATF) 40 Recommendations and guidance papers.
Consulting with CIMA
The CIMA is dedicated to discussing individual cases with FSPs to help in the practical implementation of these Guidance Notes. FSPs are urged to seek assistance and ask questions or concerns.
Updates and Major Changes
The new edition replaces the previously issued Guidance Notes from 2020 with amendments and updates reflecting the evolving financial crime landscape and international regulatory requirements. Major changes include provisions regarding e-KYC and remote Customer Due Diligence (CDD)/Ongoing Monitoring, securitization, virtual asset service providers, cryptocurrencies, and sanctions compliance.
Coverage and Comprehensive Information for FSPs
Amid a rapidly changing global regulatory landscape, these guidelines offer FSPs essential up-to-date information on best practices for preventing and detecting ML, TF, and PF. It covers various aspects of the financial sector, including:
- Banking
- Trusts
- Mutual Funds
- Insurance
- Securities Investment Business
Systems and Procedures required for Compliance Programs, Risk Assessment, and more
The Guidance Notes also provide information on systems and procedures required for Compliance Programs, risk assessment, Customer Due Diligence, record-keeping, reporting, and internal controls.
Stay Informed and Adhere to the Guidelines
FSPs are encouraged to familiarize themselves with these Guidance Notes and consult them regularly to stay informed of the latest developments in AML/CFT regulations. By adhering to these guidelines, the Cayman Islands financial sector can continue to maintain its reputation as a leader in the global finance industry while simultaneously combating financial crimes.
For more information, contact the Cayman Islands Monetary Authority or visit their website at www.cimabh.ky.