Financial Crime World

Cayman Islands Tightens Anti-Money Laundering Regulations

The Cayman Islands Monetary Authority (CIMA) has introduced new anti-money laundering (AML) regulations aimed at strengthening the island’s financial sector against money laundering and terrorist financing. The revised regulations came into effect on April 19, 2024, bringing the country in line with international standards and enhancing its reputation as a financially robust jurisdiction.

Key Changes

  • The Anti-Money Laundering Regulations (AMLRs) now explicitly apply to counter-terrorist financing and proliferation financing measures.
  • Clarifications have been made regarding customer due diligence thresholds for one-off transactions, which are now explicitly referenced at CI$10,000 in line with international standards.
  • Greater clarity has been provided on information requirements for batch files of virtual assets and risk assessment updates.
  • Companies must maintain appropriate mechanisms to provide their risk assessments to CIMA upon request and keep them updated.

New Requirements

  • Specific requirements have been introduced for sanctions screening where higher proliferation financing risks are identified, designed to strengthen the country’s defenses against money laundering and terrorist financing.
  • CIMA is now authorized to levy administrative fines against directors and officers of entities that breach the AMLRs, closing a legal loophole.
  • New requirements have been introduced for designated non-financial businesses and professions (DNFBPs), including:
    • Providing additional information on registration with their relevant supervisory authority, including the identity of anti-money laundering officers and beneficial owners.
    • Notifying their supervisory authority of any changes in their anti-money laundering risk assessment.

Compliance Support

The Maples Group is committed to assisting clients navigate the complexities of the AMLRs. If you require further guidance on your obligations under these regulations, please do not hesitate to contact us.