Cayman Islands

New Documents

The Cayman Islands Monetary Authority issued a notice to all licensees, reminding authorized persons of their anti-money laundering obligations.

The Cayman Islands Financial Reporting Authority announced three additions under the jurisdiction’s Libya sanctions regime.

Enforcement Actions

The Cayman Islands Monetary Authority issued an administrative fine of C$14,232,607.50 against the Grand Cayman, Cayman Islands-based company for violations of sections 42A and 42B of the Anti-Money Laundering Regulations (2020 Revision).

The Cayman Islands Monetary Authority issued an administrative fine of CI$72,800 against the Grand Cayman, Cayman Islands-based company for breaches of the Anti-Money Laundering Regulations (2020, as amended).


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 : 22 High : 0
Largely Compliant : 17 Substantial : 0
Partially Compliant : 1 Moderate : 6
Non-Compliant : 0 Low : 5

The Cayman Islands' technical compliance was re-rated in a Feb. 19, 2021 follow-up report.

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