Since our Cayman Islands Regulatory Update in October 2017, the Cayman Islands has introduced further anti-money laundering legislation and guidance, including the:
The recent revisions to the anti-money laundering laws particularly impact all persons carrying out a “relevant financial business” (“RFB”) as defined under the Proceeds of Crime Law (2017 Revision) (the “Law”). An important change in the Law is the expansion of the definition of RFB to include two new categories of activity: (1) “otherwise investing, administering or managing funds or money on behalf of other persons” (which would include, for example, venture capital and private equity funds); and (2) “underwriting and placement of life insurance and other investment related insurance”.
Any person carrying out RFB is required to comply with the Anti-Money Laundering Regulations (as amended) and to implement a comprehensive anti-money laundering programme within its business. The purpose of such programmes is to protect the integrity of the Cayman Islands’ financial sector through the establishment and maintenance of a compliance culture within each RFB, and such programmes must include, inter alia, the following elements:
The Guidance Notes provide helpful guidelines to assist financial service providers (“FSPs”) in complying with their anti-money laundering obligations and, in addition to general guidance, provide sector specific guidance in relation to a number of industries, including funds, investment business and insurance.
Although the Guidance Notes are described as guidance, FSPs are reminded that in deciding whether a person has committed an offence under the relevant Anti-Money Laundering legislation, the Courts are required to consider whether such person followed any supervisory guidance issued or adopted at the time.
Those persons carrying out activities that fall within the new definition of RFB have until 31 May 2018 to comply with the Anti-Money Laundering Regulations (as amended).
For additional information, please contact Richard Fear or Craig Fulton, or your usual Conyers Dill & Pearman contact.
To continue reading full articles in PDF format:
Cayman Islands Anti-Money Laundering Regulatory Update – February 2018