The Cayman Islands has introduced measures to further improve its technical compliance with the 40 Financial Action Task Force (FATF) recommendations relating to anti-money laundering and countering the financing of terrorism (AML/CFT).
Cayman remains under monitoring with regards to the Caribbean Financial Action Task Force’s (CFATF) effectiveness review. As of June 2021, FATF confirmed that only two action items remained.
One related to imposing adequate and effective sanctions in cases where relevant parties (including legal persons) do not file accurate, adequate and up-to-date beneficial ownership information.
The other involved demonstrating prosecution of all types of money laundering in line with the jurisdiction’s risk profile.
Significantly, the European Commission’s Directorate-General for Financial Services and Capital Markets Union also confirmed in May that no additional measures beyond these changes are required to remove the Cayman Islands from the European Union’s AML/CFT list.
The EU has indicated that it will initiate steps to de-list the Cayman Islands once FATF removes the Cayman Islands from its list of jurisdictions under increased monitoring.