Financial Crime World

Cayman Islands KYC Compliance Best Practices Take Centre Stage Amid Regulatory Amendments

Strengthening Anti-Money Laundering and Counter-Terrorist Financing Measures

The Cayman Islands Anti-Money Laundering Regulations (AMLRs) have undergone significant changes following the implementation of the Anti-Money Laundering (Amendment) Regulations, 2024. These amendments aim to strengthen compliance requirements and ensure a more robust framework for countering money laundering, terrorist financing, and proliferation financing.

Key Updates

  • Customer Due Diligence Thresholds: Clarifications have been made on customer due diligence thresholds, which now align with international standards.
    • One-off transactions exceeding CI$10,000 require enhanced customer due diligence.
    • Batch files of virtual assets must meet updated information requirements.
  • Risk Assessment Procedures: Risk assessment procedures have been refined to ensure consistency with national requirements and regulator guidance. The Cayman Islands Monetary Authority (CIMA) is now empowered to request sight of risk assessments as part of its inspections, underscoring the importance of maintaining up-to-date risk assessments.
  • Higher Proliferation Financing Risks: New measures have been introduced for higher proliferation financing risks, including specific sanctions screening requirements. This move aims to enhance the effectiveness of anti-money laundering and counter-terrorist financing measures.
  • Administrative Fines: Administrative fines can now be levied against directors and officers who consent, connive or neglect their entity’s non-compliance with AMLRs. This change clarifies the jurisdiction’s stance on personal liability for breaches of AML regulations.

Impact on Designated Non-Financial Businesses and Professions (DNFBPs)

  • Registration Requirements: DNFBPs are subject to updated registration requirements.
    • They must provide more detailed information, including the identity of their Anti-Money Laundering Officers and beneficial owners.
    • They are obligated to notify their supervisory authority of any changes to their AML risk assessment.

Seeking Guidance

For entities seeking guidance on navigating these regulatory changes, Maples Group is available to offer assistance. Contact our experts or your usual point of contact for more information.