Under the Cayman Islands AML regime, there is an ongoing requirement for all relevant parties (including directors) related to a Financial Service Provider (FSP) such as the Fund, should be trained on the requirements of the regime in terms of Anti-Money Laundering (AML), Counter Financing of Terrorism (CFT) and Counter Proliferation Financing (PF).
Failing to keep this up to date, can result in sanctions and fines. The requirement applies to directors and senior managers even if they are not involved in the day-to-day procedures for handling transactions that may relate to AML/CFT/PF. The law regards it as important that they understand the statutory duties placed upon them, their staff and the firm itself given that these individuals are involved in approving AML/CFT/PF policies and procedures and in some cases ultimately responsible for it.
Supervisors, managers and senior management (including board of directors) should receive a higher level of training covering all aspects of AML/CFT/PF procedures, including the offences and penalties arising from the relevant primary legislation for non-reporting or for assisting money launderers, the procedures relating to dealing with production and restraint orders and the requirements for verification of identity and retention of records. The requisite training should be undertaken on an annual basis.
Here at Paradigm Governance Partners, we offer cost effective training covering this, which can be delivered in person or via video conference. The training is always specific to the nature of the business and focuses on the relevant industry / strategy.
The course content is regularly updated to stay abreast of changes in legislation, regulations and guidance notes issued by the competent authorities in the Cayman Islands (Cayman Islands Monetary Authority and Financial Reporting Authority).
It is crucial that directors and operators of Cayman structures are aware of the regulatory requirements and particularly are kept updated on the evolving and emerging trends as it relates to AML/CFT/PF.
It calls on those charged with governance to understand the risks which may challenge their business to ensure that the appropriate risk-based controls are in place to undertake customer due diligence and that the appropriate mitigants are in place to effectively manage risk as part of ongoing monitoring.
For more information, contact the Paradigm team.