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AML Regulations – proposed amendments

On 3 April 2023, the Proceeds of Crime (Amendment) Bill 2023 was gazetted with the following proposed changes:

  • Amend the laws governing the collection, sharing, and conducting of investigations of intelligence;

  • Provide self-regulation bodies with liability protection;

  • Ensure that the main Act is in accordance with worldwide best practices;

  • Modernize the prosecution process, including defining the evidential basis on which property can be demonstrated to be criminal property or gained via illicit means.

Amendment Bills

On May 26, 2023, the following Acts were gazetted and went into effect immediately:

Rules + Statements of Guidance

On 14 April 2023, the Cayman Islands Monetary Authority ("CIMA") published a number of amended and new regulatory measures for regulated firms. These documents are available on CIMA’s website. The new Measures come into effect on 14 October 2023, six months after the date of publication.

These new measures include the following:

  • Rule and Statement of Guidance ("SOG") – Internal Controls for Regulated Entities;

  • Rule – Corporate Governance for Regulated Entities (together, the "New Measures")

The updated measures include:

  • SOG – Corporate Governance for Mutual Funds and Private Funds;

  • SOG – Outsourcing Regulated Entities;

  • Rule and SOG - Cybersecurity for Regulated Entities; and

  • SOG – Nature, Accessibility and Retention of Records

  • Regulatory Policy – Approved Stock Exchanges

Gazetted on 26 May 2023 and effective from 27 May 2024:

  • Rule and Regulatory Policy on Domestic Systemically Important Deposit-Taking Institutions

  • Rule and Statement of Guidance – Reinsurance Arrangements Gazetted on 7 June 2023 and immediately in effect:

  • Regulatory Policy – Licencing for Class D Insurer

CIMA: General Industry Notices

Re: Update to Cayman Financial Sanctions Regime - date: 09 May 2023

The Cayman Islands Monetary Authority (the “Authority”) hereby notifies financial service providers (“FSPs”) that an update has been made to the current sanctions regime. A list of sanctions orders can be found on the Financial Reporting Authority’s website.

Supervisory Information Circular

A Supervisory Information Circular Entitled Stress Testing for Insurers was published by CIMA on June 28, 2023. This Supervisory Circular contains instructions to be followed in the creation and implementation of stress testing activities and is relevant to all kinds of insurers licensed to conduct (re)insurance business.

CIMA: Publication / Newsletter / Reports & Surveys Re: The Anchor – April 2023

The Anchor, CIMA's AML/CFT bulletin published in April 2023, briefly covered the following topics:

  • Spotlight on Beneficial Ownership

  • Alert: Human Trafficking and modern slavery

  • Ransomware: Further Red Flag Indicators

Re: Thematic Cybersecurity Review Report 2023 – June 2023

In June 2023, CIMA released its Thematic Cybersecurity Review Report, which examines the findings of a review of 12 regulated entities from various industries, including Banking, Insurance, and Securities. The review was conducted between April and December 2022 and provided information on best practices and areas of concern.

Financial Reporting Authority (FRA) - general licenses for the payment of legal expenses under Russia’s sanctions regime.

On 14 April 2023, the Governor of the Cayman Islands issued a new General License, GL/2023/0001 - Legal Services (the Cayman General License). This authorizes any Person or Relevant Institution to receive payments from a Designated Person (DP) or carry out any other necessary act. The Cayman General License came into effect on 14 April 2023 and expires on October 14, 2023. The FRA’s press release can be found here.

Ministry of Financial Services & Commerce – FATF update: Cayman Satisfies FATF Action Plan; Onsite Visit Authorised

In June 2023, the Attorney General, the Hon. Samuel Bulgin, KC; the Minister of Financial Services and Commerce, the Hon. André Ebanks; and the Head of the Anti-Money Laundering Unit, Mr Francis Arana attended the plenary to represent the Cayman Islands and discuss progress made on the remaining recommended actions from the FATF Action Plan.

It is anticipated that an onsite visit report will be presented at the next FATF Plenary, scheduled for October 2023, at which the Cayman Islands looks to receive confirmation as to whether it will be delisted from the FATF’s list of Jurisdictions under Increased Monitoring.

Media Release: Grand Cayman, 3 May 2023: Amendment Bills to Strengthen CIMA's AML Enforcement, Information Sharing Passed in Parliament.

During the latest meeting of Parliament, held (26-28 April 2023), seven amendment Bills were passed into law. These are meant to strengthen CIMA’s powers to apply proportionate and dissuasive sanctions to all types of legal persons.

31 July 2023

For the 2022 reporting year, FFIs and FIs must submit their FATCA and CRS filings to the DITC.

1 Sept 2023

For insolvent and liquidated entities, year-end termination plans must be made. After 31 December 2023, entities that are still in operation must pay their annual fees through 2024.

15 Sept 2023

FIs must submit their CRS compliance form to the DITC for the 2022 reporting year.

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