On 13th December 2017, new and far-reaching Anti-Money Laundering (AML) Regulation came into effect.
The changes in the AML regulations affect financial businesses domiciled in the Cayman Islands.
The entities that fall into scope are all entities that are otherwise investing, lending, administering or managing funds or money on behalf of other persons (this includes all funds, private trusts and structured finance vehicles).
The entities in scope are required to appoint individuals who are suitably qualified and experienced for the following roles:
- Money Laundering Reporting Officer (MLRO)
- Deputy Money Laundering Reporting Officer (DMLRO)
- AML Compliance Officer (CO)
Dates
- Entities existing before 1 June 2018 have until 30 September 2018 to appoint the named individuals.
- All new entities incorporated from 1 June 2018 will need to be able to demonstrate compliance immediately.
What is the penalty for non-compliance
Non-compliance will be deemed an offence, and you and your business may be held liable for:
- On summary conviction, to a fine of US$625,000; or
- On conviction on indictment, to a fine and imprisonment for two years
In additional CIMA may impose administrative fines for breaches up to US$1.25m.
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