The next time world leaders sit down to discuss anti-money laundering black lists, Cayman will have a seat at the table.
In a sign of softening diplomatic relations between the island and global financial watchdogs, the territory has been invited to be a guest member of the Financial Action Task Force for the next year.
Cayman was only removed from the intergovernmental body’s ‘grey list’ of countries subject to close scrutiny over money laundering and terror financing last year.
That decision came after lawmakers tightened up reporting standards on the ownership of companies and introduced a new police unit to tackle international financial crime.
Financial Services Minister André Ebanks, currently in Paris for the latest plenary sessions of the task force, said the invite was a “profound moment” for Cayman and a sign of the tide turning in terms of its global reputation.
“For the Cayman Islands to have its own seat at the FATF table, and be recognised as a country capable of having a presence alongside the likes of G20 countries, speaks volumes of our current international standing,” he said.
The announcement was hailed as a “positive development” by industry leaders in Cayman.
Steve McIntosh, CEO of Cayman Finance, said, “When rules are being set that directly affect you, it is much better to be in the room than to be outside it looking in.”
Cayman, along with Senegal, will be a guest member for the next year – part of a new initiative to expand the diversity of the organization beyond its 40 core members.
In practical terms, Cayman’s representatives will be able to participate in meetings and working groups of the organisation, which sets the global standards on what countries must do to prevent money laundering, terror financing and sanctions-busting arms trading.
Local financial services advocates say Cayman has long struggled against misconceptions among policymakers about the nature and type of business that takes place on these shores.
And the improved relationship with the Financial Action Task Force is seen as vindication of diplomatic efforts to change Cayman’s reputation as a risky place to do business.
FATF made the announcement on its social media pages Wednesday, saying Cayman now has a “seat and a voice” at the table.
“The Cayman Islands and Senegal will participate for one year, sharing valuable lessons and acting as lighthouses in their regions to promote the importance of fighting financial crime,” the organisation said in a statement on Facebook.
The task force’s new president, Elisa de Anda Madrazo, introduced the new “regional bodies guest initiative” to “increase then voice of countries from regions that are underrepresented at the FATF membership level”, according to a press release from the Cayman Islands government.
Cayman Finance CEO McIntosh, responding to questions from the Compass Wednesday, said, “I think the fact that we have been invited to be the very first guest member is testament to the extraordinary professionalism of the Cayman delegation and the relationship of mutual respect they have established with the FATF community.”
Minister Ebanks is in Paris for the plenary with a Cayman delegation including Attorney General Samuel Bulgin and Cayman Islands Monetary Authority president Cindy Scotland.
Related Videos
Every time we see a movie and a criminal is “wiring his money to the Cayman Islands” I want to ask the movie producer to come here and try to open a bank account. As we all know.
Plenty of far easier places to open a bank account…. here’s looking at you USA.