AG outlines four year AML/terrorist financing plan

| 26/05/2017 | 0 Comments

(CNS Business): Following the shortcomings identified previously by the Financial Action Task Force (FATF) and in Cayman’s regulatory regime to address emerging threats and vulnerabilities in the financial sector, the attorney general said a strategy has been developed ahead of the next FATF review. In a short statement the government’s chief lawyer, Samuel Bulgin said significant progress had been made on anti money laundering and terrorist financing but more work needed to be done before that review which will take place later this year.

“The government recognises the need to take ongoing measures to update the AML/CFT regime to address the full range of risks relating to money laundering, the financing of terrorism and proliferation to the Cayman Islands and to communicate its strategy to relevant stakeholders,” he said.

Responding to the threats and vulnerabilities identified in the recently published National Risk Assessment (NRA), a four-year Anti-Money Laundering and Counter Terrorist Financing Strategy has been developed. Bulgin said the strategy will ensure that the jurisdiction has a “robust, adaptive and responsive AML/CFT framework, consistent with international standards, and effective in maintaining the integrity of the Cayman Islands’ financial services system”.

The strategy comes out of a year-long evaluation of the identified risks and the goals, the AG stated include, enhancing the jurisdiction’s AML/CFT legal and regulatory framework and implementing a comprehensive risk-based supervisory framework. It also aims to strengthen sanctions, intelligence and enforcement, enhance domestic cooperation and coordination while ensuring an efficient and effective system for international cooperation and raising AML/CFT awareness among all stakeholders and the general public.

Despite the formation of the plan, it is not clear now whether it will be approved by the new government when it is formed or given the make-up of the likely leaders whether there will be agreement on some of the key legislation that will underpin the strategy and ensure compliance.

A major problem is the Legal Practitioner’s law. If the new government is not able to write, agree, pass and implement a new piece of legislation within a very short period of time, Cayman could fail its FATF review.

See the full strategy in the CNS Library

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Category: Finance, Financial Services

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