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Expertise

Regulatory, AML and Compliance Services

In a climate of increased regulation, it is vital for businesses to take professional advice on regulatory matters.

Stuarts' regulatory, AML and compliance team advises insurers, banks and trusts and other regulated financial institutions and entities on all aspects of financial regulation in the Cayman Islands and have extensive knowledge of applicable laws, regulations and rules. We also have particular experience and expertise in the additional compliance challenges associated with the use of bitcoin and other cryptocurrencies as a means of payment, particularly in the context of investment funds and the ongoing updates to the regulatory regimes being implemented in the Cayman Islands such as the Virtual Asset Service Providers Act (VASPA), Economic Substance Regime and Beneficial Ownership Regime.

We offer concise and clear advice to clients and can draw upon compliance experts.

With the continuing development of the regulatory environment, the role of our regulatory team is critical in identifying the various regulatory risks our clients may face and in the implementation of controls for protection against those risks.

We offer the following key Regulatory and AML Services in the Cayman Islands:

  • provision of Money Laundering Reporting Officer (MLRO) 
  • provision of Deputy Money Laundering Reporting Officer (DMLRO)
  • guidance and advice to clients in relation to AML/CFT and technical support on AML/CTF and regulatory issues including: drafting manuals, writing policies and procedures, conducting audits and mock regulatory inspections.
  • AML and compliance training programmes for clients
  • fund formation and structuring (including advising on the regulation of both Private and Mutual funds by the Cayman Islands Monetary Authority);
  • digital asset entity formation and structuring (including advising on the regulation of virtual asset service providers by the Cayman Islands Monetary Authority - CIMA);
  • advising on the structure of funds investing in cryptocurrencies, including on matters of regulatory compliance;
  • advising on the Cayman Islands aspects of fund and portfolio transactions;
  • assisting smaller clients, fund managers and advisers in preparing the full suite of fund documents where there is no onshore counsel;
  • advising on fund restructurings, changes to offering terms, and matters related to illiquid portfolios and investor issues (e.g. side letters, redemptions, and suspensions);
  • regulatory matters and changes such as in relation to CRS and FATCA; and
  • the liquidation and termination of funds, both voluntary and contentious; and
  • ongoing compliance and regulatory obligations.

Read our Guidance Note on AML Officer Requirements in the Cayman Islands 

We offer the following key AEOI Compliance Services in the Cayman Islands:

The Stuarts dedicated Regulatory Group offers legal services in connection with all aspects of automatic exchange of information (“AEOI”). Together with our affiliate, Southern Management Services Ltd., we can handle all aspects of AEOI compliance. We provide the full suite of automatic exchange of information ‘AEOI’ services to assist our clients with their regulatory obligations in the Cayman Islands.

  • Provision of Cayman Islands legal advice regarding the potential application of FATCA and CRS to an entity;
  • Determining entity classification under each reporting regime (FATCA and CRS) and any available exemptions;
  • Advising on self-certification and due-diligence requirements;
  • Drafting and assisting with self-certification forms, sponsored entity agreements, delegation agreements and outsourcing agreements;
  • Drafting and assisting with AEOI policies and procedures;
  • Registering an entity with the Internal Revenue Service (IRS) and obtaining a Global Intermediary Identification Number (GIIN);
  • Registering an entity with the Cayman Islands Tax Information Authority and obtaining a Financial Institution (FI) Number;
  • Advising on the requirements of principal point of contact (PPOC), Authorising Person (AP) and Responsible Officer (RO); and
  • Conducting compliance reviews and assisting with reports.

Read our Guidance Note on AEOI Obligations for Cayman Islands Entities