ANTI-MONEY LAUNDERING SERVICES & TRAINING LOCATED IN THE CAYMAN ISLANDS.
SERVICES
Money Laundering Reporting Officer
The Cayman Islands legal requirements have now changed and a hedge fund is now required to name an individual in the following 3 positions (whereas previously the fact that an Administrator had these officers would have been sufficient to comply):
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Anti-Money Laundering Reporting Officer (MLRO);
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Deputy Anti- Money Laundering Reporting Officer (DMLRO); and
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Compliance Officer (CO).
Deputy Money Laundering Reporting Officer
Who can act as MLRO, DMLRO & CO -
The Regulations state as follows for the appointment of the MLRO, DMLRO & CO
“It is recognised that it is possible that an FSP has no employees in the Cayman Islands and where it may not be possible for a senior member of staff (or a sole trader him/herself) cannot be the MLRO. In these circumstances the FSP may appoint someone who […]
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(a) is a natural person;
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(b) is autonomous (meaning the MLRO is the final decision maker as to whether to file a SAR);
Compliance Officer
3. (c) is independent (meaning no vested interest in the underlying activity); and
4. (d) has and shall have access to all relevant material in order to make an assessment as to whether the activity is or is not suspicious. “
Although not addressed in the Regulations, CIMA have confirmed that the same person can be both the DMLRO and CO.
The person who acts as the MLRO, DMLRO and CO must be notified to CIMA through the registered office of the hedge fund.
Assistance
AML Cayman Ltd. can provide the services required to assist with the ongoing obligations under the Cayman Islands Anti-Money Laundering Regulations, 2017 -
The main guidance for Cayman Islands entities to comply with the applicable anti-money laundering (and anti-terrorism funding laws) is sourced from the Cayman Islands Anti-Money Launder Regulations, 2017 (the “Regulations”)
The Regulations were updated in December 2017 and resulted in a significant change from the prior approach as it applies to hedge funds. Previously if the hedge fund had no employees in the Cayman Islands and delegated the anti-money laundering functions to an Administrator located in an equivalent jurisdiction then that would have been sufficient to meet the Cayman Islands anti-money laundering requirements.
2018
All hedge funds must comply by Sept 2018
Other AML Changes
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All CIMA regulated funds were always within the requirements of the Regulations and previously only some unregulated funds were covered. However, all funds whether regulated or unregulated are now included in the AML requirements of the Regulations.
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Adoption of a risk-based approach to AML which means that the Administrator should assess each shareholder and assign them a risk rating and change their AML policies to include a risk rating.
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The requirement to conduct FATCA non-compliant territory checks and sanction screening for shareholders and any employees.
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Reliance on incoming SWIFT message from an equivalent jurisdiction as a means to identify shareholders is retained but the Regulations envisage that the ordinary due diligence will be collected at a later stage.
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Schedule 3 Countries has been repealed and replaced with a list of equivalent jurisdictions.
We would be delighted to share our experience and we can typically offer the MLRO, DMLRO & CO for a fixed annual fee.
CONTACT
Inquiries
For any inquiries, questions or commendations, please call: +1 345 749 8180 or e-mail.