Cayman_Islands Cayman Islands

New Documents

HM Treasury’s Office of Financial Sanctions Implementation issued a notice concerning the addition of seven individuals and six entities to the consolidated list pursuant to the Iran (Sanctions) Regulations 2023.

HM Treasury’s Office of Financial Sanctions Implementation published a notice concerning amendments to the sanctions entry for one entity designated pursuant to the Democratic People’s Republic of Korea (Sanctions) (EU Exit) Regulations 2019.


Enforcement Actions

The Cayman Islands Monetary Authority issued administrative fines totaling CI$116,680 on the George Town-based financial institution for breaching various requirements under the Anti-Money Laundering Regulations.

The Cayman Islands Monetary Authority issued an administrative fine of CI$299,050 against the George Town-based financial institution for breaching the requirements of the Anti-Money Laundering Regulations, including failing to identify ultimate beneficial ownership.

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 2020, there were 123 banks, 147 trust company licenses, 145 licenses for company management and corporate service providers, 775 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: 2021 International Narcotics Control Strategy Report (INCSR)


FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 22 High : 0
Largely Compliant : 18 Substantial : 0
Partially Compliant : 0 Moderate : 6
Non-Compliant : 0 Low : 5

The Cayman Islands' technical compliance was re-rated in a Oct. 20, 2021 follow-up report.


Rank : 105/110
Score : 7.64/10


Rank : N/A
Score : N/A

Tax Justice Network i

Rank : 1/133
Score : 76/100