AML/CFT Legislative Framework
The AML/CFT legal and regulatory framework of the Cayman Islands is responsive to emerging risks and is informed by the themes from the latest National Risk Assessment and the national AML/CFT Strategy. CIMA has undertaken several refinements to its legislative framework to enhance the jurisdiction's regulatory landscape for preventing and detecting money laundering, terrorist financing and prolifration financing in the Cayman Islands.
Subsidiary to the Monetary Authority Act, other key legislation include:
While the Proceeds of Crime Act, AML/CFT regulations and the Sanctions Orders establish a risk-based approach to the prevention and detection of money laundering and terrorist financing, this is covered principally by The Terrorism (United Nations Measures) (Overseas Territories) Order, 2001 and and supplemented by The Anti-terrorism (Financial and Other Measures) (Overseas Territories) Order 2002, and The Terrorist Asset-Freezing Act 2010 (Overseas Territories) Order 2011.
Proliferation of Financing (Prohibition) Act
The Proliferation Financing (Prohibition) Act, empowers the Cayman Islands Monetary Authority to take action against persons engaged in activities that may have some connection with terrorist financing, money laundering or the development of weapons of mass destruction. Orders issued under the Proliferation Financing (Prohibition) Act are published in the Cayman Islands Gazette. The United Nations has passed two resolutions relating to anti-proliferation, one related to North Korea and the other related to Iran. These resolutions are in force in the Cayman Islands via orders passed in the UK, namely the Iran (Restrictive Measures) (Overseas Territories) Order 2012 and the North Korea (United Nations Measures) (Overseas Territories) Order 2006.
The Terrorism Act is a domestic legislation criminalising terrorism and terrorist financing, the latter in accordance with the UN Convention on the Suppression of Financing of Terrorism. In accordance to the law, it is an offence:
Section 200 of the Proceeds of Crime Act notes an amendment to the Terrorism Act by stating that a person commits an offence if:
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