The Cayman Islands Monetary Authority will shortly have in place a revised memorandum of understanding with Banco Central de Brazil, which essentially streamlines the memorandum with Cayman’s laws and new regulations.
The first such agreement between CIMA and its Brazilian counterpart was signed 10 February, 1999. The newly modified MOU comes about after a strengthening of laws regulating Cayman’s financial services, states a GIS press release.
Cabinet this month approved the revised MOU which, among other things, includes references to Cayman’s financial intelligence unit and ensures that on-site inspections are governed by subsequent amendments to the CIMA law.
‘We are happy that the MOU with Brazil has progressed to this stage,’ said CIMA Acting Managing Director Patrick Bodden. He noted that the updated agreement makes regulating relevant financial services easier for both CIMA and the Brazilian central bank.
‘As a regulator, we are always willing to help out fellow regulators,’ he said.
Mr. Bodden has already signed the MOU, and the document was forwarded to Brazil for his counterpart’s signature.
Since the 1999 agreement, CIMA and BCB have communicated on proposed amendments, aimed at keeping the two authorities’ cooperation in tune with domestic and international changes.
Additionally, in 2002 CIMA developed a model MOU for establishing cooperative relationships with authorities in other jurisdictions, and this model was approved by the then-Executive Council.
In the new model, the financial intelligence unit is defined as ‘the central national agency responsible for receiving (and as permitted, requesting), analysing, and disseminating to the competent authorities disclosures of financial information.’ These disclosures relate to suspected proceeds of crime and financing of terrorism, or information required by law or regulation to combat money laundering and financing of terrorism.
Cayman’s financial intelligence unit is the Financial Reporting Authority. It came into existence through a 2003 amendment to the Proceeds of Criminal Conduct Law.
Similarly, an amendment to the Cayman Islands Monetary Authority Law strengthens and makes clear the procedure for on-site inspections in this jurisdiction. So precise and concise is the 2002 amendment that only three paragraphs are needed in the updated agreement to replace seven sub-sections in the 1999 MOU.
CIMA also has MOUs with the Bank of Jamaica, the Bermuda Monetary Authority, Isle of Man Financial Supervision Commission, and the Superintendency of Banks in the Republic of Panama.
In addition to those bilateral agreements for cooperation in financial services, CIMA is signatory to a multilateral MOU involving central banks of Barbados; the Bahamas; Belize; Trinidad and Tobago; Jamaica; the Netherlands Antilles; and the financial services commissions of the British Virgin Islands, and Turks and Caicos.