Financial Crime World

Title: Reasserting Commitment to Combating Financial Crime: Cayman Islands’ Updated AML/CFT Regulatory Landscape

The Cayman Islands are strengthening their stance against financial crimes by updating their regulatory framework. This comes in response to emerging risks and in accordance with the jurisdiction’s latest National Risk Assessment and AML/CFT Strategy. The Cayman Islands Monetary Authority (CIMA) is leading the charge to fortify the Cayman Islands’ reputation as a robust and compliant financial hub.

Key Legislation

The Cayman Islands’ commitment to maintaining a rigorous AML/CFT regulatory landscape is underpinned by several key pieces of legislation:

  1. Monetary Authority Act

    • Foundational legislation for the Cayman Islands’ financial sector regulatory framework.

  2. Proceeds of Crime Act

    • Establishes a risk-based approach to the prevention and detection of money laundering and terrorist financing.

  3. Anti-Money Laundering Regulations

    • Guidelines to implement the provisions of the Proceeds of Crime Act.

  4. Proliferation Financing (Prohibition) Act

    • Empowers CIMA to tackle proliferation financing, such as the financing of activities related to weapons of mass destruction.

  5. Terrorism Act

    • Domestic legislation that criminalizes terrorism and terrorist financing.

Preventing Money Laundering and Terrorist Financing

The Proceeds of Crime Act, AML/CFT regulations, and Sanctions Orders work in unison to cover the prevention and detection of money laundering and terrorist financing:

  • Proceeds of Crime Act and AML/CFT Regulations

    • These regulations outline criminal offenses related to money laundering and provide guidelines for the prevention and detection of such activities.

  • Sanctions Orders

    • CIMA issues orders to address terrorist financing. These orders are published in the Cayman Islands Gazette.

Combating Proliferation Financing

The Proliferation Financing (Prohibition) Act grants CIMA the authority to take action against individuals involved in activities related to terrorist financing, money laundering, and the development of weapons of mass destruction. Orders issued under this Act are also published in the Cayman Islands Gazette.

Additionally, the UN has passed two resolutions related to anti-proliferation financing:

  1. North Korea
  2. Iran

These resolutions are enforceable in the Cayman Islands through orders passed in the UK. Specifically, the North Korea (United Nations Measures) (Overseas Territories) Order 2006 and the Iran (Restrictive Measures) (Overseas Territories) Order 2012.

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