Financial Crime World

Title: Cayman Islands Strengthens Financial Crime Fighting Measures with New AML Regulations (2023 Revision)

The small Caribbean island nation of the Cayman Islands has recently overhauled its Anti-Money Laundering (AML) regulations, consolidating various amendments and revisions into a single, comprehensive document titled the “Anti-Money Laundering Regulations (2023 Revision).” [1]

Key Updates and Compliance [2]

  • Effective date: January 12, 2023
  • Consolidation of updates between 2017 and 2022
  • Focus on enhancing financial crime prevention measures

New Provisions [3]

Compliance Programs [3.1]

  • Established businesses required to have adequate control systems
  • Appointment of Compliance Officer
  • Policy and procedure development
  • Ongoing staff training

Risk Assessments [3.2]

  • Identifying and mitigating potential risks
  • Continuous evaluation of operations, customers, and business relationships
  • Factors to consider: Country risk, new products, technologies

Customer Due Diligence [3.3]

  • Customer and beneficial owner identification
  • Identity verification and risk assessments:
    • Standard due diligence
    • Enhancements for politically exposed persons (PEPs)

Simplified and Enhanced Customer Due Diligence [3.4]

  • Simplified: Routine transactions with low-risk customers
  • Enhanced: Higher-risk situations

Record Keeping [3.5]

  • Maintaining accurate and complete records
  • Easy access and reporting as needed
  • Part VIII specifies record-keeping procedures

Enforcement and Consequences [4]

  • Cayman Islands Monetary Authority (CIMA) and other competent authorities strengthened supervisory role
  • Non-compliance: Potential of administrative fines and other penalties

Conclusion [5]

The Cayman Islands’ new AML regulations reflect a commitment to combating financial crimes and maintaining a secure and transparent financial environment for both local and international businesses. [1]

[1]: Cayman Compilation - Proceeds of Crime Act 2020 [2]: Government of Cayman Islands - Cayman Islands Anti-Money Laundering Regulations [3]: Government of Cayman Islands - Anti-Money Laundering Regulations (2023 Revision) [4]: Cayman Compilation - Penal Code (2021 Revision) [5]: Cayman Islands Monetary Authority