Cayman Islands’ progress in strengthening measures to tackle money laundering and terrorist financing.

 

Port of Spain, Trinidad and Tobago, February 19, 2021– As a result of the Cayman Islands’ progress in strengthening its framework to tackle money laundering and terrorist financing since their 2019 mutual evaluation, the Caribbean Financial Action Task Force (CFATF) has re-rated the country on 16 of the 40 Recommendations.

Cayman Islands has been in an enhanced follow-up process, following the adoption of their CFATF Mutual Evaluation Report, which assessed the effectiveness of Cayman Islands’ Anti-Money Laundering and Counter-terrorist financing (AML/CFT) measures and the country’s compliance with the FATF Recommendations. In line with the CFATF Procedures for Mutual Evaluations, Cayman Islands has reported back to the CFATF on the progress it has made to strengthen its AML/CFT framework.

This report analyses Cayman Islands’ progress in addressing the technical compliance deficiencies identified in the Mutual Evaluation Report.   

To reflect this progress, the CFATF has re-rated Cayman Islands on the following Recommendations:

1 - Assessing risks and applying a risk-based approach from Partially Compliant to Largely Compliant.

19 - Higher-risk countries from Partially Compliant to Compliant.

22 - DNFBPs: Customer due diligence from Partially Compliant to Compliant.

23 - DNFBPs: Other measures from Partially Compliant to Compliant.

24 - Transparency and beneficial ownership of legal persons from Partially Compliant to Largely Compliant.

25 - Transparency and beneficial ownership of legal arrangements from Partially Compliant to Largely Compliant.

26 - Regulation and supervision of financial institutions from Partially Compliant to Compliant.

28 - Regulation and supervision of DNFBPs from Partially Compliant to Compliant.

29 - Financial intelligence units from Partially Compliant to Largely Compliant.

32 - Cash couriers from Partially Compliant to Compliant.

34 - Guidance and feedback from Partially Compliant to Compliant.

35 – Sanctions from Partially Compliant to Compliant.

The report also looks at whether Cayman Islands’ measures meet the requirements of FATF Recommendations that have changed since their 2019 mutual evaluation, considering any new measures since the mutual evaluation. Accordingly, Recommendations 2, 15, 18 and 21 examined. The CFATF agreed to maintain the rating of Compliant for Recommendation 18, re-rate Recommendation 2 from Partially Compliant to Compliant and re-rate Recommendation 21 from Largely Compliant to Compliant. The rating for Recommendation 15 was downgraded from Largely Compliant to Partially Compliant.

The FUR can be accessed at the following link:

Click here to access the FUR.