Cayman’s financial services industry, financial regulators and the territorial government are bracing for a mid-2017 review of anti-money laundering regimes.
Ahead of the long-planned inspection by the Caribbean Financial Action Task Force, a number of new pieces of legislation have been passed or proposed to strengthen the British territory’s defenses against money laundering or terrorist financing.
Changes include the recent dismantling of the Confidential Relationships (Preservation) Law, proposed legislation to regulate nonprofit organizations and non-financial services-related businesses, including real estate and precious metals dealers.
Financial Services Minister Wayne Panton said in May that Cayman will be quite familiar with periodic reviews done by the Financial Action Task Force, but the one due to occur in the second half of 2017 will be different than those the territory experienced in the past.
“These new assessments are no longer just about technical requirements,” Mr. Panton said. “There will be an assessment based on effectiveness [of the current regulatory system]. Our view is we need to have that in place ahead of time.”
Ministry chief officer Dax Basdeo said the review’s objective is to ensure businesses that tend to handle large sums of money can verify, to a reasonable extent, that no cash laundering or terrorism support activities are going on.