Cayman Islands

New Documents

The Cayman Islands issued the Monetary Authority (Administrative Fines) (Amendment) Regulations, 2020, as published in the country’s Legislation Gazette No. 47, which revises proscribed penalties for serious regulatory breaches.

The Cayman Islands Financial Reporting Authority published its annual report, highlighting the regulator’s efforts to combat financial crimes, such as money laundering and use of criminal proceeds.

News

Enforcement Actions

The Cayman Islands Monetary Authority issued a decision revoking the full mutual fund administrators license of the George Town, Cayman Islands-based company based on its breach of the Anti-Money Laundering Regulations (2020 Revision) and other failures.

The Cayman Islands Monetary Authority revoked the banking and trust license of the Cayman Island-based institution, Hinduja Bank & Trust (Cayman) Limited, for breaching the Banks and Trust Companies Law and Anti-Money Laundering Regulations.


Important Facts

  • The U.S. State Department labels the Cayman Islands as a major money laundering jurisdiction. The UK overseas territory is an offshore financial center that provides a wide range of financial services. As of September 2019, there were 122 banks, 144 trust company licenses, 144 licenses for company management and corporate service providers, 776 insurance-related licenses, and five money services businesses (MSBs) in the Cayman Islands. Most money laundering that occurs on the island is related to foreign criminal activity that involves fraud, tax evasion and drug trafficking. The nation is an indirect tax regime and considered attractive to those seeking to evade taxes in their home jurisdictions. The Cayman Islands prohibits shell banks and anonymous accounts as well as the registration of offshore gaming entities. It also maintains strong due diligence procedures to guard against bulk cash smuggling related to cruise ships. Customer due diligence and suspicious transaction report requirements cover banks, trust companies, investment funds, fund administrators, securities and investment businesses, insurance companies and managers, MSBs, lawyers, accountants, corporate and trust service providers, money transmitters, dealers of precious metals and stones, the real estate industry, virtual asset service providers, single family office and other relevant financial business.
-Source: 2020 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 12 High : 0
Largely Compliant : 15 Substantial : 0
Partially Compliant : 13 Moderate : 6
Non-Compliant : 0 Low : 5

BASEL i

Rank : N/A
Score : N/A

TRANSPARENCY INTERNATIONAL i

Rank : N/A
Score : N/A

Tax Justice Network i

Rank : 1/133
Score : 76/100