Cayman AML Regulations Update
The Cayman Islands Monetary Authority (CIMA) as of March 28th 2018 informed the industry that all Relevant Financial Business (“RFB”) as defined under section 6 of the Proceeds of Crime Law 2017 (which includes Cayman Regulated Investment Funds), will be required under Part II and Part IX of the Anti-Money Laundering Regulations 2017 (“AML regulations.”) to appoint a physical person as an Anti-Money Laundering Compliance Officer (“AMLCO”), Money Laundering Reporting Officer (“MLRO”), and a Deputy MLRO (“DMLRO”) by May 31st 2018.
Requirements for Cayman Islands Regulated Investment Funds (“IF”):
Under the 2017 CIMA guidance notes, an IF will be compliant with the law once it completes one of the following steps:
- The IF director appoints him/herself directly as the AMLCO and/or MLRO/DMLRO
- An AMLCO and/or MLRO/DMLRO is appointed through a contractual agreement with the fund administrators (“FA”). The FA policies must allow such appointments and the FA must be in the Cayman Islands or a jurisdiction within the AML Steering Group (“AMLSG”) List
- An AMLCO and/or MLRO/DMLRO is appointed through a suitable third party, as long as that third party is in the Cayman Islands or a jurisdiction on the AMLSG List
Under the new AML regulations, because the IFs are required to appoint a physical person as an AMLCO, MLRO, and DMLRO at the IF level, there would be a requirement for the IF to have its own policy and procedures manuals in place. This would ensure that the IFs have proper governance in place around the new AML regulations.
IFs should also be aware that CIMA is now able to issue fines (as per “The Monetary Authority (administrative fines) Regulations, 2017”) to non-compliant RFB’s under the new AML regulations. The AMLCO can also be fined and/or imprisoned under the same laws.
Please contact Tri-Bridge Compliance Partners Ltd. at info@tribridge.ky if you would like additional information on how these regulations affect you, or if you would like information on how our boutique services can help you meet your compliance requirements. www.tribridge.ky