The information in this section aims to provide quick facts about developments and trends relating to the ever-evolving subjects of anti-money laundering and countering the financing of terrorism (AML/CFT). As the Cayman Islands Monetary Authority (CIMA) continues its efforts to increase public awareness regarding matters impacting the financial services industry, the following facts will serve as another learning tool for our licensees and people interested in the AML/CFT developments within the Cayman Islands.
Did You Know...
- Amendments to the Securities Investment Business Law were gazetted on 18 June 2019. For more information, visit www.gov.ky.
- “Ongoing monitoring” occurs where a person or entity carrying out relevant financial business continually reviews its clients throughout the relationship on a risk appropriate basis.
- Anyone in the Cayman Islands can file a Suspicious Activity Report (SAR) if they have knowledge or a suspicion that a person is engaged in a financial transaction in which there are reasonable grounds to suspect the transaction is related to the proceeds of criminal conduct as defined in the Proceeds of Crime Law.
- A Suspicious Activity Report (SAR) helps to alert the proper authorities so that an investigation can be initiated at the earliest possible time, and ideally prevent the crime from occurring.
- Suspicious Activity Report (SARs) are filed with the Financial Reporting Authority (FRA) of the Cayman Islands. Once a SAR is filed, the FRA may request additional information from the person filing the SAR or from other persons, law enforcement and regulatory agencies for further investigation. For more information, visit www.fra.gov.ky.
- Proliferation Financing refers to preventing the financing of the proliferation of weapons of mass destruction. It goes hand in hand with terrorism and terrorist financing, as well as targeted financial sanctions. CIMA has also released amendments to guidance notes on proliferation financing, which can be found here.
- The Financial Action Task Force and other international bodies have been examining proliferation financing to determine where it differs from terrorism financing such as targeted financial sanctions, to allow countries, financial institutions (FIs) and Designated Non-Financial Businesses and Professions (DNFPBs) to better understand the risks. Locally, the Anti-Money Laundering Regulations were recently amended to clarify obligations of FIs and DNFBPs on procedures for targeted financial sanctions and other material amendments.
- The Cayman Islands Gazette website features over 10 pieces of legislation that relate to anti-money laundering/combating the financing of terrorism. To view, visit www.gov.ky.