Cayman financial services providers, including entities carrying on securities investment business (“SIB”) are required to comply with the Proceeds of Crime Law (2018 Revision), the Anti-Money Laundering Regulations (2018 Revision) (the “AMLRs”) and associated Guidance Notes on the Prevention and Detection of Money Laundering and Terrorist Financing in the Cayman Islands, December, 2017 (as amended) (the “Guidance Notes”) in order to prevent and report money laundering, terrorist financing and proliferation financing. The Guidance Notes provide, amongst other things, that financial services providers should, on a regular basis, conduct an AML/ CFT audit, the frequency of which should be commensurate with the entity’s nature, size, complexity and risks identified during its risk assessments.
By Notice dated 25 January 2019 the Cayman Islands Monetary Authority (“CIMA”) confirmed that they have been requesting that entities carrying on SIB that are registered with CIMA as “excluded persons” (the “Company”) have their AML/ CFT systems and procedures audited by suitably qualified entities to check for compliance with the AMLRs. The scope of such audit reports should at a minimum assess whether:-
Going forward, the AML/ CFT audit reports will be used by CIMA to aid them in their assessment of entities’ ongoing compliance with the AMLRs and the frequency for subsequent AML/ CFT audit reports to be provided.
Should you have any queries please contact either CIMA’s Securities Supervision Division at firstname.lastname@example.org or your usual Conyers Dill and Pearman contact.
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Anti-Money Laundering Audits Required For Securities Investment Business Excluded Persons