Cayman Satisfies all FATF Recommendations

On 23 June 2023, the Financial Action Task Force (“FATF”) announced that the Cayman Islands has fully satisfied all of the FATF Recommended Actions (“RAs”) on its measures against money laundering and terrorist financing (“AML/CTF”).

Later this year, the Cayman Islands will undergo a routine onsite inspection by the FATF and, if successful, is eligible to be taken off the FATF's list of jurisdictions subject to heightened monitoring by October, also known as the “grey” list. Being removed from the "grey" list would acknowledge the Cayman Islands' implementation of a strong and efficient AML/CFT framework.

After its removal from the FATF list, the Cayman Islands is anticipated to undergo the European Commission's process to be delisted from the EU's catalog of "high-risk third countries" with identified shortcomings in their AML/CFT frameworks. This is because the EU's list closely follows the FATF's listing procedure. Doing so will further encourage EU investors to consider the Cayman Islands as the ideal offshore jurisdiction for their commercial and investment needs.

The FATF's verdict signifies a favorable recognition of the Cayman Islands as a jurisdiction that is fully committed to adopting and maintaining international standards in AML and CTF.

A copy of the 23 June 2023 statement from the Cayman Islands Ministry of Financial Services can be found here.

Should you have any questions please contact your usual Stuarts attorney or email Chris Humphries at chris.humphries@stuartslaw.com.