As previously communicated (May 2018), the Cayman Island has recently made changes to its Anti-Money Laundering (AML) regime replacing the Money Laundering Regulations (2015 Revision). Under the new AML Regulations, regulated and unregulated investment funds must appoint natural persons in the required roles of Anti-Money Laundering Compliance Officer (AMLCO), Money Laundering Reporting Officer (MLRO) and Deputy MLRO (collectively ‘AML Officers’).
On 24 September 2018, the Cayman Island Monetary Authority (CIMA) issued a notice to extend the deadline of appointment and notification of the AML Officers.
- Regulated Funds are required to file the names of each AML Officer and submit it via the CIMA Regulatory Enhanced Electronic Forms Submission (REEFS) system by 31 December, 2018.
- Unregulated Funds currently do not have notification and filing requirement to CIMA, however, such entities should also have the appointments of AML Officers in place by 31 December, 2018.
- Pursuant to Part II 3 (1) and Part IX 33 of the Anti-Money Laundering Regulations (2018 Revision) (AMLRs), the Cayman Islands Monetary Authority (CIMA) has mandated that a person carrying out relevant financial business as per Schedule 6 of the Proceeds of Crime Law (2018 Revision) (POCL) and is carrying out such relevant financial business from or within the Cayman Islands, must designate a natural person to act as its Anti-Money Laundering Compliance Officer (AMLCO), Money Laundering Reporting Officer (MLRO) and Deputy Money Laundering Reporting Officer (DMLRO) (together the “AML Officers”) to comply with AMLRs.
- To satisfy the requirements of the AMLRs, a person carrying out relevant financial business may
- Delegate the performance of any function to a person; or
- Place reliance on a person to perform any function required to be performed to ensure compliance with the requirements of the AMLRs.
- Both regulated and unregulated persons, whose activities (from or within the Cayman Islands) fall within the definition of relevant financial business in Schedule 6 of the POCL, will be subject to the AMLRs. As a result, funds (regulated and unregulated), excluded persons (registered under Section 5(2) and Schedule 4 of the Securities Investment Business Law (2015 Revision)) and special purpose vehicles (SPV’s), whose activities fall within Schedule 6 of the POCL, will be required to appoint a natural person as its AML Officers.
How Vistra can support
Vistra can help clients navigate Anti-Money Laundering Regulations (AML) including outsourcing and supporting in-house compliance functions. With a network of compliance officers in all major jurisdictions, we offer an interconnected global compliance service
If you have any questions or need advice on the changes of the AML regime, please contact your usual Vistra representative or email firstname.lastname@example.org.