Cayman Islands

New Documents

The Financial Reporting Authority of Cayman Islands issued a notice to licensed entities and financial institutions concerning changes to the jurisdiction’s Russia sanctions regime, which targets actors involved in Russia’s illegal annexation of Crimea and Sevastopol, among other actions.

The Financial Reporting Authority of the Cayman Islands issued a financial sanctions notice concerning amendments to the sanctions entries for six individuals and one entity with regard to chemical weapons.

News

Enforcement Actions

The Cayman Islands Monetary Authority issued a CI$100,000 fine against the Grand Cayman, Cayman Islands-based financial institutions for violation of the anti-money laundering regulations pursuant to sections of 42A and 42B the Monetary Authority Law (2020 Revision).

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.


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 : 6/141
Score : 7.64/10

TRANSPARENCY INTERNATIONAL i

Rank : N/A
Score : N/A

Tax Justice Network i

Rank : 1/133
Score : 76/100