{{ languageVal }}
  • English
  • French (Canada)
 

Industry Updates

Cayman Islands Update: CFATF AML / CFT Mutual Evaluation Report

29 Mar 2019

On 19 March 2019, the Caribbean Financial Action Task Force ("CFATF") published a Mutual Evaluation Report into Anti-Money Laundering ("AML") and Counter-Terrorist Financing ("CFT") measures in the Cayman Islands (the "Report")1

The CFATF evaluated the measures in place in the Cayman Islands as at the date of their onsite visit (4 to 15 December 2017).  The Report analyses the level of compliance with the FATF 40 Recommendations2, the level of effectiveness of the Cayman Islands' AML / CFT system, and provides recommendations on how the regime could be strengthened.

Summary

In general, the Report found that the Cayman Islands has a high level of commitment to ensuring its AML / CFT framework is robust and capable of safeguarding the integrity of the jurisdiction's financial sector.  The jurisdiction's AML / CFT regime is complemented by a well-developed legal and institutional framework.

The Cayman Islands scored well on technical compliance.  Strengths were identified in the areas of preventative measures (adequate AML / CFT risk-based policies and procedures) and supervision of Financial Institutions, the adoption of the beneficial ownership registration regime, and mutual legal assistance.  The Cayman Islands achieved ratings of either Compliant or Largely Compliant for 27 out of the 40 Recommendations, with no 'Non-Compliant' ratings.

In relation to the 'Immediate Outcomes' on effectiveness and implementation, certain recommendations were made in the Report, which we understand the Cayman Islands Government intends to consider and address.

The CFATF also acknowledged that a number of significant changes made to the Cayman Islands' legislative framework prior to, and during, the onsite visit by CFATF, but were not able to be taken into consideration fully.  These changes, that have already been implemented, are intended to further enhance the overall effectiveness of the Cayman Islands' AML / CFT regime, e.g. the Anti-Money Laundering Regulations (2018 Revision).

Next Steps

We understand that the Cayman Islands Government will consider and address the Report's recommendations over the coming months, including by introducing further legislative enhancements, and will continue to work closely with the CFATF, as well as the FATF's International Cooperation Review Group (which will then issue a further report in due course).

If you have any specific questions, please talk to your usual Maples Group contact, or one of the Regulatory & Compliance Services Advisory Group. 


1. A copy of the report can be found here.

2.  A copy of the standards can be found here.

Related Services

Regulatory & Financial Services Advisory 

Our global team of regulatory lawyers provides expert legal advice to BVI, Cayman Islands, Irish, Jersey and Luxembourg entities regarding AML and CTF compliance including development and assessment of AML / CTF and risk management systems, KYC and customer due diligence best practices, conduct of money laundering and fraud proceedings and provision of expert evidence on AML / CTF and regulatory obligations. 

Corporate

Advising on the laws of the BVI, the Cayman Islands, Ireland, Jersey and Luxembourg, our global corporate team provides expert legal advice to corporate clients on all corporate commercial matters.  Our clients include major banks, multinationals and institutional investment firms, leading law and accountancy firms and a number of state / government entities across all industry sectors. 

Funds & Investment Management

Advising on the laws of the BVI, the Cayman Islands, Ireland, Jersey and Luxembourg, our global Funds & Investment Management team provides expert legal advice on every aspect of the life cycle of an investment fund including set up, management and investment across a broad range of fund structures and management entities.  

Regulatory & Compliance

Risk management and regulatory compliance have become key priorities for clients with both regulators and investors demanding greater transparency and enhanced reporting. Compliance with these obligations means ensuring a clear understanding of the ongoing requirements and often the aggregation, calculation, maintenance, reconciliation and submission of extensive data sets to various parties on a regular basis. The Maples Group has unrivalled expertise in regulatory matters, particularly in the field of anti-money laundering and counter-terrorist financing. We pride ourselves on our established relationships with regulatory bodies and have had significant involvement with the development of financial services law and policy both locally and internationally. Our ability to draw on this experience enables us to provide prompt, pertinent and clear advice that adds real value and helps our clients determine how best to maintain compliance across multiple jurisdictions.

Dispute Resolution & Insolvency

Advising on the laws of the BVI, the Cayman Islands and Ireland, our global Dispute Resolution & Insolvency team provides expert legal advice on cross-border litigation and contentious and non-contentious restructuring.  We offer a broad range of dispute resolution and insolvency services, bringing an unrivalled depth of experience to each dispute and ensuring that you receive fast, accurate and pragmatic advice.