The Cayman Islands’ legislation to counter money laundering and the financing of terrorism has been officially recognised by Jersey in the Channel Islands.
The Jersey Financial Services Commission recently added the Cayman Islands to its list of countries and territories considered to have an equivalent anti-money laundering framework as Jersey’s.
The move is of significant benefit to Cayman-based financial institutions and their clients that do business with financial institutions in Jersey. It allows Jersey’s customer identification procedures to be satisfied if the client has met Cayman’s customer identification requirements. This potentially saves time and resources that would otherwise have to be spent processing and supplying know-your-customer documentation to Jersey in order for business transactions to be done there.
Jersey’s anti-money laundering legislation and guidance provide in certain circumstances for a financial services business to place reliance on another institution to conduct customer identification procedures where the institution is subject to obligations equivalent to those in Jersey and where an overseas regulatory authority supervises the institution.
The listing of Cayman comes after months of discussion between the Cayman Islands Monetary Authority and its Jersey counterpart as well as CIMA’s lobbying at international forums such as the Overseas Group of Banking Supervisors for reciprocal recognition of equivalent anti-money laundering/counter terrorist financing frameworks among jurisdictions, states a press release.