Cayman Islands FATF Compliance Association Update October 2020

 
Cayman Islands’ Compliance
Association
FATF update, October 2020
 
 
Two parallel processes
 
Technical Compliance – 40 recommendations
 
Effectiveness – 11 immediate outcomes
 
CFATF: Enhanced follow up: Technical compliance and effectiveness
 
FATF: Observation period: Effectiveness
 
The Timeline
 
Mutual Evaluation Report published: March 2019
End of observation period: October 2020
30
th
 November to 4
th
 December 2020: Virtual CFATF Plenary
November 2020: Post Observation Period Report to the Joint Group of
Americas
December 2020 / January 2021: Joint Group face-to-face meeting
February  2021: FATF Plenary decision
 
 
FATF PLENARY February 2021
 
 
 
 
Progress made by the Cayman Islands
 
63 Recommended Actions
Sufficient Progress, ‘positive and tangible’
The Cayman Islands has made significant progress in all areas:
 
Enhanced Domestic Collaboration
Understanding of Risk
Enhancing Law Enforcement
Targeted Financial Sanctions
Supervision of Financial Institutions, TCSPs, DNFBPs and NPOs
Transparency of legal persons and arrangements
Outreach
 
 
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Terrorist Financing
SIBL EPs
Special Economic Zone
NPOs
Legal Persons and Arrangements – key findings
Proliferation Financing Threat Assessment
The Cayman Islands as an International Financial Centre
 
Consequential actions
https://amlu.gov.ky/wp-content/uploads/2020/03/consequential-risk-actions-
final-march-13.pdf
(Also note sectoral risk assessments)
 
 
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Removing the Benefit from Crime and Outgoing International Requests
 
Guidance on SARs
Strategic analysis
 
Customs and Border Control -  ability to identify individuals seeking to move
cash and BNIs across borders
 
Human and IT resources and training
 
 
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FRA dissemination
FRA website – sanctions notifications
CIMA notifications
Outreach and training, Quick Guide to Targeted Financial Sanctions
 
 
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SIBL EPs abolished - Registered Persons are supervised
Risk rating technology
VASPs
Guidance notes:
Proliferation Financing
Targeted Financial Sanctions
Ongoing Monitoring
Risk Based Approach
Virtual Asset Services Providers
 
 
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Lawyers
Accountants
Dealers in Precious metals and stones
Real estate agents
Property Developers
 
 
 
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502 registered NPOs in June 2020
Targeted risk based supervisory methodology
Onsite inspections
Guidance and outreach
 
 
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Information which is publically available
Directors, Alternate Directors
Authorised share capital, initial subscribers
 
BO enforcement manual
 
Trustees
Duty to keep records
Duty to disclose
Power to request information
 
 
O
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t
r
e
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c
h
 
It’s everyone’s business
E-learning platform
AMLSG Outreach Sub-Committee
AMLU website
 
 
COVID-19 adaptation
 
FATF guidance
The Financial Reporting Authority implemented the necessary safeguards to
allow the filing of SARs via email
Since mid-March 2020, CIMA has deployed remote, virtual and video
technology to conduct inspections
CARA remote inspections
CIMA, CARA, CIBFI advisories – Compliance and awareness
Virtual court hearings
Recruitment, outreach, Stakeholders’ Forum
 
 
Industry engagement and assistance
 
The achievements of the jurisdiction
The use of risk assessments
E-learning platform, attendance at outreach, feedback
Targeted Financial Sanction notifications
AMLU website: www.amlu.gov.ky
 
 
The Outcome
 
 
 
Strengthen the Cayman Islands’ AML / CFT / CPF regime
 
Deter and prevent criminals from utilizing the jurisdiction
 
Improve the international reputation of the Cayman Islands
 
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The Cayman Islands' compliance with FATF recommendations and effectiveness outcomes are highlighted in the update. The mutual evaluation report, timelines for reviews, and progress made by the jurisdiction are detailed. Enhanced collaboration, risk assessments, and actions taken to combat money laundering and terrorist financing are emphasized in the report.


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  1. Cayman Islands Compliance Association FATF update, October 2020

  2. Two parallel processes Technical Compliance 40 recommendations Effectiveness 11 immediate outcomes CFATF: Enhanced follow up: Technical compliance and effectiveness FATF: Observation period: Effectiveness

  3. The Timeline Mutual Evaluation Report published: March 2019 End of observation period: October 2020 30thNovember to 4thDecember 2020: Virtual CFATF Plenary November 2020: Post Observation Period Report to the Joint Group of Americas December 2020 / January 2021: Joint Group face-to-face meeting February 2021: FATF Plenary decision

  4. FATF PLENARY February 2021 JG presents POPR to the next FATF ICRG meeting June 2020 (with an action plan if after their analysis of the Big 6 if rated NC / PC and progress in each IO rated low or moderate the Cayman Islands do not make sufficient progress) Cayman Islands does not provide high level political statement it goes to the Public Statement FATF ICRG determines that Cayman Islands HAS MADE ENOUGH PROGRESS. FATF ICRG determines that jurisdiction HAS NOT MADE ENOUGH PROGRESS. Cayman Islands provides High level political commitment it goes to the Compliance document The jurisdiction is monitored by the CFATF only for the MER follow-up process. JG monitors progress and makes recommendations to the FATF ICRG (updates provided at every FATF Plenary)

  5. Progress made by the Cayman Islands 63 Recommended Actions Sufficient Progress, positive and tangible The Cayman Islands has made significant progress in all areas: Enhanced Domestic Collaboration Understanding of Risk Enhancing Law Enforcement Targeted Financial Sanctions Supervision of Financial Institutions, TCSPs, DNFBPs and NPOs Transparency of legal persons and arrangements Outreach

  6. Enhanced Domestic Collaboration

  7. Increasing the Understanding of ML / TF / PF Risks via Risk Assessments Terrorist Financing SIBL EPs Special Economic Zone NPOs Legal Persons and Arrangements key findings Proliferation Financing Threat Assessment The Cayman Islands as an International Financial Centre Consequential actions https://amlu.gov.ky/wp-content/uploads/2020/03/consequential-risk-actions- final-march-13.pdf (Also note sectoral risk assessments)

  8. Enhancing Law Enforcement The Cayman Islands Bureau of Financial Investigations Stand alone ML, foreign predicate and TF Removing the Benefit from Crime and Outgoing International Requests Guidance on SARs Strategic analysis Customs and Border Control - ability to identify individuals seeking to move cash and BNIs across borders Human and IT resources and training

  9. Targeted Financial Sanctions FRA dissemination FRA website sanctions notifications CIMA notifications Outreach and training, Quick Guide to Targeted Financial Sanctions

  10. Supervision of Financial Institutions and TCSPs Establishment of AML Division at CIMA SIBL EPs abolished - Registered Persons are supervised Risk rating technology VASPs Guidance notes: Proliferation Financing Targeted Financial Sanctions Ongoing Monitoring Risk Based Approach Virtual Asset Services Providers

  11. Supervision of Designated Non-Financial Businesses and Professionals Lawyers Accountants Dealers in Precious metals and stones Real estate agents Property Developers

  12. Supervision of Non-Profit Organizations 502 registered NPOs in June 2020 Targeted risk based supervisory methodology Onsite inspections Guidance and outreach

  13. Transparency of Legal Persons and Arrangements Information which is publically available Directors, Alternate Directors Authorised share capital, initial subscribers BO enforcement manual Trustees Duty to keep records Duty to disclose Power to request information

  14. Outreach It s everyone s business E-learning platform AMLSG Outreach Sub-Committee AMLU website

  15. COVID-19 adaptation FATF guidance The Financial Reporting Authority implemented the necessary safeguards to allow the filing of SARs via email Since mid-March 2020, CIMA has deployed remote, virtual and video technology to conduct inspections CARA remote inspections CIMA, CARA, CIBFI advisories Compliance and awareness Virtual court hearings Recruitment, outreach, Stakeholders Forum

  16. Industry engagement and assistance The achievements of the jurisdiction The use of risk assessments E-learning platform, attendance at outreach, feedback Targeted Financial Sanction notifications AMLU website: www.amlu.gov.ky

  17. The Outcome Strengthen the Cayman Islands AML / CFT / CPF regime Deter and prevent criminals from utilizing the jurisdiction Improve the international reputation of the Cayman Islands

  18. CONTACT US Anti-Money Laundering Unit, Attorney General s Chambers Phone: 345 949 7900 | Fax: 345 949 7183 | www.amlu.gov.ky

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