Regulation Name: AML Regulations 2024
Publishing Date: 19 April 2024
Region:  Cayman Islands
Agency: Cayman Islands Monetary Authority (CIMA)

In a bid to fortify its regulatory landscape against financial crimes, the Cayman Islands implemented significant amendments to its Anti-Money Laundering Regulations (AMLRs) on April 19, 2024. The Anti-Money Laundering (Amendment) Regulations, 2024, ushered in a series of reforms aimed at bolstering compliance, enhancing risk assessment procedures, and extending accountability measures. Let’s delve into the core revisions:

Tidy-Ups:
The amendments clarified that compliance requirements extend beyond anti-money laundering (AML) to encompass counter-terrorist and proliferation financing measures. Outdated references to customer due diligence thresholds were rectified, aligning them with international standards. Moreover, provisions regarding information requirements for batch files of virtual assets were clarified, reflecting the evolving financial landscape.

Risk Assessment Updates:
The rewording of pre-existing requirements emphasizes the importance of maintaining updated risk assessments, with the Cayman Islands Monetary Authority (CIMA) now actively seeking these as part of regulatory inspections. Specific requirements for sanctions screening were introduced, particularly in contexts of higher proliferation financing risks.

Application of Administrative Fines to Directors and Officers:
Previously ambiguous, the amendments now hold directors, managers, and secretaries accountable for breaches of AML regulations, enabling fines against individuals involved in offenses committed by entities under their purview.

Expanded Requirements for Designated Non-financial Business and Profession (DNFBP):
Non-financial services businesses subject to AMLRs witnessed expanded registration requirements, including disclosure of AML Officers and beneficial owners. Additionally, DNFBPs are now obligated to promptly notify supervisory authorities of any changes in their AML risk assessment, enhancing transparency and regulatory oversight.

These amendments signify the Cayman Islands’ commitment to combating financial crimes and aligning its regulatory framework with international standards. By enhancing compliance, strengthening risk assessment protocols, and extending liability measures, the jurisdiction aims to uphold integrity and trust in its financial systems.

Read the full amendment here.