The Financial Action Task Force (FATF) today removed the Cayman Islands from its list of countries under increased monitoring.
This decision was announced on 27 October at the closing of the FATF’s plenary meetings in Paris, France. The FATF announcement confirmed that the Cayman Islands maintains a robust and effective anti-money laundering/counter terrorist financing (AML/CFT) monitoring regime.
Removal from the FATF list of countries subject to increased monitoring was justified by the Cayman Islands’ demonstrated adoption of effective AML/CFT monitoring measures, including enforcement actions in appropriate cases to enforce the jurisdiction’s AML/CFT requirements in a timely and effective manner. Enforcement actions now include administrative penalties for proven breaches of required elements of AML/CFT monitoring as well as the imposition of sanctions to assure filing of accurate, adequate and up to date beneficial ownership information by obliged Cayman Islands entities. The demonstrated prosecution of money laundering cases with dissuasive penalties by the Cayman Islands’ authorities was another key element justifying the FATF’s removal decision.
Following the decision, the Cayman Islands is eligible to be removed from the European Union’s enhanced AML/CFT due diligence list.
This FATF decision is a welcome recognition of the Cayman Islands as a jurisdiction which is fully committed to implementing and maintaining international AML/CFT compliance standards.