Anti-Money Laundering Regulations - Cayman Islands Dollar
CAYMAN ISLANDSProceeds of Crime Law(2020 Revision)ANTI-MONEY LAUNDERINGREGULATIONS(2020 Revision)Supplement No. 3 published with Legislation Gazette No. 4 of 9th January, 2020.
PUBLISHING DETAILSRevised under the authority of the Law Revision Law (1999 Revision).The Anti-Money Laundering Regulations, 2017 made 19th September, 2017.Consolidated with —Anti-Money Laundering (Amendment) Regulations, 2017 made 1st November,2017Anti-Money Laundering (Designated Non-Financial Business and Professions)(Amendment) (No. 2) Regulations, 2017 made 12th December, 2017Anti-Money Laundering (Amendment) Regulations, 2019 made 4th June, 2019Anti-Money Laundering (Amendment) (No. 2) Regulations, 2019 made 16th July,2019Consolidated and revised this 31st day of December, 2019.Note (not forming part of the Regulations): This revision replaces the 2018 Revisionwhich should now be discarded.Page 2Revised as at 31st December, 2019c
Anti-Money Laundering Regulations (2020 Revision)Arrangement of RegulationsCAYMAN ISLANDSProceeds of Crime Law(2020 Revision)ANTI-MONEY LAUNDERING REGULATIONS(2020 Revision)Arrangement of RegulationsRegulationPagePART I - Introductory1.2.Citation .9Definitions.9PART II - Compliance Programme, Systems and TrainingObligations3.4.5.6.7.Compliance programme, systems and training obligations .17Duties of the Anti-Money Laundering Compliance Officer .17Systems and training to prevent money laundering .17Group-wide programmes .19Application of measures extraterritorially.19PART III - Assessing and Applying a Risk-Based Approach8.9.Assessment of risk.20New products, business, delivery mechanisms and new or developing technologies .21PART IV - Customer Due Diligence10.11.12.cAnonymous accounts .21When customer due diligence is required .21Obligation to identify customer .21Revised as at 31st December, 2019Page 3
Arrangement of Regulations13.14.15.16.17.17A.18.19.20.Anti-Money Laundering RegulationsCustomer due diligence re - beneficiary of life insurance . 23Beneficiary as risk factor . 23Verification of identity of customer and beneficial owner . 23Adoption of risk management procedures . 24Failure to complete customer due diligence . 24Considerations for applying customer due diligence . 24Obligation where unable to comply with customer due diligence . 24When to file suspicious activity report . 24Identification procedures - supplementary provisions . 25PART V - Simplified Customer Due Diligence21.22.23.24.25.26.Simplified customer due diligence application . 26Acceptable applicants . 26Payments delivered in person or electronically . 27Identification procedures - transactions on behalf of another . 28Eligible introducer . 29Verification not required . 30PART VI - Enhanced Customer Due Diligence27.28.29.Application of enhanced customer due diligence . 30Enhanced customer due diligence required . 31Enhanced customer due diligence at payout . 31PART VII - Politically Exposed Persons30.Additional requirements - politically exposed persons . 31PART VIII - Record-Keeping Procedures31.32.Record-keeping procedures . 32Record-keeping procedures - supplementary provisions . 34PART IX - Money Laundering Reporting Officer33.34.Appointment of the Money Laundering Reporting Officer . 35Internal reporting procedures . 35PART X - Identification and record-keeping requirementsrelating to Wire Transfers35.36.37.38.39.40.41.42.Application of this Part . 36Information accompanying transfers of funds and record-keeping. 37Transfers of funds within the Islands . 38Batch file transfers . 38Obligations of payment service provider of payee . 38Transfers of funds with missing or incomplete information about the payer . 38Risk-based assessment . 39Record-keeping by payment service provider of payee . 39Page 4Revised as at 31st December, 2019c
Anti-Money Laundering Regulations (2020 Revision)43.44.45.46.47.48.49.Arrangement of RegulationsInformation accompanying a transfer of funds.39Straight-through processing .39Obligation to comply with requirements.39Obligation to file suspicious activity report .40Technical limitations .40Cooperation .40Conflict between Parts .41PART XI - Shell Banks and Correspondent Banks50.51.52.53.Shell banks .41Correspondent banks .41Cross-border correspondent banking .41Payable-through accounts .41PART XIA - Disclosure requirements for persons carryingout relevant financial business53A. Duty of a person carrying out relevant financial business to produce information .4253B. Failure to produce information .4353C. Requirement to share information .43PART XII - Disclosure Obligations of SupervisoryAuthorities54.55.Disclosure - application of Part .44Disclosure obligation.44Part XIIA - Designated Non-Financial Businesses andProfessionsDesignation of DNFBPs and Supervisory Authorities4555A. Designated non-financial business and professions .4555B. Supervisory Authorities of DNFBPs .4555C. Cooperation among Supervisory Authorities .4655D. Duties of Supervisory Authorities .46DNFBP Register4755E. Dutiy to maintain DNFBP register .4755F. Requirement for registration.4855G. Cancellation of registration .4855H. Fit and proper person test .4855I. Representations by DNFBP .4955J. Notification of cancellation of registration .50Obligations of DNFBPs5055K. Repealed .5055L. Limitation .5055M. Duty to allow site visits by Supervisory Authority .51cRevised as at 31st December, 2019Page 5
Arrangement of RegulationsAnti-Money Laundering Regulations55N. Failure to comply with information requirements . 5155O. False or misleading information . 52Restrictions on the Disclosure of Information by Supervisory Authorities5255P. Prohibition on disclosure of information . 5255Q. Where disclosure is permitted . 52Administrative Fines5355R. Power to impose administrative fines . 5355S. Fine amounts . 5355T. Limitation period . 5455U. Relationship with penalties . 5455V. Principles for making fine decision . 54Discretionary fine criteria5555W. Application of discretionary fine criteria . 5555X. Criteria in relation to both fine and amount . 5655Y. Additional criteria in relation to fine amount . 5755Z. Power to discount usual fine to reflect agreement . 57General5755ZA.Steps required . 5755ZB.Notice containing an inaccuracy . 5855ZC.Requirements for breach notice . 5855ZD.Duty to consider reply . 5955ZE.Rectification of a breach subject to a minor fine . 59Imposing a fine6055ZF. Decision about fine . 6055ZG.Requirements for fine notice . 60Internal review of minor fines by a Supervisory Authority designated for a DNFBP6155ZH.Application to relevant person or body within the Supervisory Authority designated for aDNFBP for review . 6155ZI. No stay of original decision . 6255ZJ. Decision by relevant person or body within the Supervisory Authority upon review . 62Appeal against discretionary fines to Grand Court6355ZK.Application to the Grand Court for leave to appeal . 6355ZL. Application of Grand Court Rules and practice directions on judicial review . 6355ZM.Security for costs. 6355ZN. Stay of original decision only by application . 6355ZO.Hearing and outcome . 64Fine is a debt to the Crown6455ZP.Fine is a debt to the Crown . 6455ZQ.Interest on fines . 6555ZR.Payment of more than one fine . 65Page 6Revised as at 31st December, 2019c
Anti-Money Laundering Regulations (2020 Revision)Arrangement of Regulations55ZS.Enforcement .65Miscellaneous6555ZT. Electronic notices by the Supervisory Authority.6555ZU.Evidentiary provisions .66PART XIII - Offences, Repeal, Savings and Transitional56.57.58.59.Offences .66Offences by bodies corporate, partnerships and unincorporated associations .67Repeal and savings .67Transitional .67SCHEDULE 169CLASSES OF LONG TERM BUSINESS69SCHEDULE 271PRESCRIBED PROVISIONS AND BREACH CATEGORIES71ENDNOTES72Table of Legislation History: .72cRevised as at 31st December, 2019Page 7
Anti-Money Laundering Regulations (2020 Revision)Regulation 1CAYMAN ISLANDSProceeds of Crime Law(2020 Revision)ANTI-MONEY LAUNDERING REGULATIONS(2020 Revision)PART I - Introductory1.Citation1.2.These Regulations may be cited as the Anti-Money Laundering Regulations (2020Revision).Definitions2.(1) In these Regulations —“Anti-Money Laundering Compliance Officer” means the person designatedin accordance with regulation 3(1);“appeal” means an appeal for which leave is granted by the Grand Court underregulation 55ZK and any further appeals relating to the decision on such anappeal;“applicant for business” means a person seeking to form a businessrelationship, or carry out a one-off transaction, with a person who is carryingout relevant financial business in the Islands;“banking business” has the meaning assigned in the Banks and TrustCompanies Law (2020 Revision);“batch file transfer” means several individual transfers of funds which arebundled together for transmission;cRevised as at 31st December, 2019Page 9
Regulation 2Anti-Money Laundering Regulations (2020 Revision)“beneficial owner” means the natural person who ultimately owns or controlsthe customer or on whose behalf a transaction or activity is being conducted andincludes but is not restricted to —(a) in the case of a legal person other than a company whose securities arelisted on a recognised stock exchange, a natural person who ultimatelyowns or controls, whether through direct or indirect ownership or control,10% or more of the shares or voting rights in the legal person;(b) in the case of any legal person, a natural person who otherwise exercisesultimate effective control over the management of the legal person; or(c) in the case of a legal arrangement, the trustee or other person who exercisesultimate effective control over the legal arrangement;“beneficiary or beneficiaries” means —(a) in relation to wire transfer, the natural or legal person or legal arrangementwho is identified by the originator as the receiver of the requested wiretransfer; and(b) in relation to life insurance or another investment linked insurance policy,a natural or legal person, or a legal arrangement, or category of persons,who will be paid the policy proceeds when or if an insured event occurs,which is covered by the policy.“breach notice” means a notice under regulation 55ZC, of a SupervisoryAuthority’s intention to impose a fine, issued by a Supervisory Authority, to aparty that a Supervisory Authority believes has breached a prescribed provision;“business relationship” means any arrangement between two or more personswhere —(a) the purpose of the arrangement is to facilitate the carrying out oftransactions between the persons concerned on a frequent, habitual orregular basis; and(b) the total amount of any payment or payments to be made by any person toany other in the course of that arrangement is not known or capable ofbeing ascertained at the time the arrangement is made.“close associate” means any natural person who is known to hold the ownershipor control of a legal instrument or person jointly with a politically exposedperson, or who maintains some other kind of close business or personalrelationship with a politically exposed person, or who holds the ownership orcontrol of a legal instrument or person which is known to have been establishedto the benefit of a politically exposed person;“competent authority” or “competent authorities” means all publicauthorities in the Islands with designated responsibilities for combating moneylaundering and terrorist financing including —Page 10Revised as at 31st December, 2019c
Anti-Money Laundering Regulations (2020 Revision)Regulation 2(a)the Financial Reporting Authority and the authorities charged with theresponsibility for investigating and prosecuting money laundering,associated predicate offences and terrorist financing, and seizing orfreezing and confiscating criminal assets;(b) authorities receiving reports on cross-border transportation of currencyand bearer negotiable instruments; and(c) authorities that have anti-money laundering or counter terrorist financingsupervisory or monitoring responsibilities aimed at ensuring complianceby a relevant financial business with anti-money laundering or counterterrorist financing requirements;“connected person” means, in relation to a person carrying out relevantfinancial business where the person is a body corporate, partnership orunincorporated body —(a) a manager of the body corporate, partnership or unincorporated body;(b) a director, secretary or senior executive of the body corporate, partnershipor unincorporated body, regardless of job title; or(c) the natural person who ultimately owns or controls the body corporate,partnership or unincorporated body and includes —(i) in the case of a legal person, other than a company whose securitiesare listed on a recognised stock exchange, a natural person whoultimately owns or controls, whether through direct or indirectownership or control, ten per cent or more of the shares or votingrights in the legal person;(ii) in the case of a legal person, a natural person who otherwise exercisesultimate effective control over the management of the legal person;or(iii) in the case of a legal arrangement, the trustee or other person whoexercises ultimate effective control over the legal arrangement;“cross-border wire transfer” in relation to the transfer of money, means asingle wire transfer in which the ordering financial institution and beneficiaryfinancial institution are located in different countries or any chain of suchtransfers;“customer” means a person who is in a business relationship, or is carrying outa one-off transaction, with a person who is carrying out relevant financialbusiness in the Islands;“designated non-financial business and profession” or “DNFBP” means anatural or legal person designated under regulation 55A;“discount agreement” means an agreement in principle between a SupervisoryAuthority and a party that has breached a prescribed provision about the amountof a proposed discretionary fine;cRevised as at 31st December, 2019Page 11
Regulation 2Anti-Money Laundering Regulations (2020 Revision)“discretionary fine” means —(a) a proposed fine for which a Supervisory Authority has fine discretions; or(b) a fine in respect of which a Supervisory Authority exercised finediscretions;“domestic wire transfer” in relation to the transfer of money, means any wiretransfer in which the ordering financial institution and beneficiary financialinstitution are located in the Islands;“established business relationship” is a business relationship where a personproviding a relevant financial service has obtained, under proceduresmaintained by that person in accordance with Part IV, satisfactory evidence ofthe identity of an applicant for business;“family member” includes the spouse, parent, sibling or child of a politicallyexposed person;“Financial Action Task Force” means the task force established by the Groupof Seven, to develop and promote national and international policies to combatmoney laundering and terrorist financing;“financial group” means a group that consists of a parent company or any othertype of legal person, exercising control and coordinating functions over the restof the group for the application of group supervision together with branches orsubsidiaries that are subject to anti-money laundering policies and proceduresat the group level;“fine discretion” means a Supervisory Authority’s discretion under regulation55S(5) to decide whether to impose a fine and the amount of the fine;“fine notice” means a notice issued by a Supervisory Authority under regulation55ZG;“firm” means —(a) in respect of attorneys at law —(i) a body corporate, association, partnership or limited liabilitypartnership of attorneys who are admitted to practice law in theIslands; or(ii) an attorney admitted to practice law in the Islands who is inindependent practice as a sole proprietor or who provides legalservices to an employer other than the Government; and(b) in respect of accountants, a body corporate, association, partnership,limited liability partnership or sole practitioner —(i) engaging in public practice, as defined in the Accountants Law (2020Revision); orPage 12Revised as at 31st December, 2019c
Anti-Money Laundering Regulations (2020 Revision)Regulation 2(ii) providing an accountancy service of recording, reviewing, analysing,calculating and reporting on financial information, in the course ofbusiness, which includes the following —(A) bookkeeping services;(B) payroll services;(C) accounts preparation; or(D) providing tax advisory or tax compliance services;“former DNFBP” means a person who at any time has been carrying onbusiness as a DNFBP, but who has ceased to carry on the DNFBP.“give”, in relation to a notice or information, means to deliver, provide, send ortransmit the notice or information;“government body” means —(a) a government company;(b) an entity within the public service; or(c) a statutory authority,within the Islands;“government company” means —(a) a company in which the Government has a controlling interest; and(b) in respect of each such company, includes all subsidiary entities of thecompany;“interest” means interest accrued or accruing on a fine under regulation 55ZQ;“insurance business” means business of any of the classes of business specifiedin the Schedule;“intermediary payment service provider” means a payment service provider,neither of the payer nor of the payee, that participates in the execution oftransfers of funds;“legal arrangement” means a trust or partnership or other entity createdbetween parties which lacks separate legal personality;“legal person” means a company or other entity created by operation of lawwith separate legal personality;“minor fine” means a fine under regulation 55S(1);“minor fine (continuing)” means a fine under regulation 55S(2);“Monetary Authority” has the meaning assigned under the Law;“money laundering” means doing any act which constitutes an offence undersections 19 to 22 of the Terrorism Law (2018 Revision) or section 144(10) ofthe Law or, in the case of an act done otherwise than in the Islands, wouldconstitute such an offence if done in the Islands;cRevised as at 31st December, 2019Page 13
Regulation 2Anti-Money Laundering Regulations (2020 Revision)“Money Laundering Reporting Officer” means the “nominated officer” asdefined in the Law and “Deputy Money Laundering Officer” shall beconstrued accordingly;“natural person” means a human being, as distinguished from a company orother entity created by operation of law with separate legal personality;“notice” means written information given, or to be given in hard copy,electronically, by hand, by post or by any other mode of communication;“one-off transaction” means any transaction other than a transaction carriedout in the course of an established business relationship formed by a personcarrying out relevant financial business;“original decision” means a Supervisory Authority’s decision —(a) in relation to a minor fine or minor fine (continuing), to impose the fine;(b) in relation to a discretionary fine, to impose a fine of a specified amount;or(c) in relation to both (a) and (b);“originator” means a person whether natural or legal who places an order withthe relevant financial business for the transmission of a wire transfer;“overseas regulatory authority” means an authority which, in a countryoutside the Islands, exercises a function corresponding to a statutory function ofa Supervisory Authority in relation to relevant financial business in the Islands;“party”, in relation to a provision under these Regulations dealing with abreach, fine or proposed fine, means the person on whom the fine has beenimposed or is being proposed or considered to be imposed;“payable-through account” means a correspondent account that is useddirectly by third parties to transact business on their own behalf;“payee” means a person or legal arrangement that is the intended final recipientof transferred funds;“payer” means either a person who holds an account and allows a transfer offunds from that account, or, where there is no account, a natural or legal personwho places an order for a transfer of funds;“payment service provider” means a person whose business includes theprovision of transfer of funds serv
Anti-Money Laundering (Designated Non-Financial Business and Professions) (Amendment) (No. 2) Regulations, 2017 made 12th December, 2017 Anti-Money Laundering (Amendment) Regulations, 2019 made 4th June, 2019 Anti-Money Laundering (Amendment) (No. 2) Regulations, 2019 made 16th July, 2019 Consolidated and revised this 31st day of December, 2019.
UBS Fund Services (Cayman) Ltd, P.O. Box 852GT, Grand Cayman, Cayman Islands. Tel: 1 345 914 1000 Fax: 1 345 914 4060 Email: SH-UBS-Cayman-VantageFunds@ubs.com Auditor BDO (Cayman Islands) , PO Box 31118 2nd Floor, Building 3 Governors Square, 23 Lime Tree Bay Avenue, Grand Cayman KY1 1205, Cayman Islands
Cayman Islands Financial Institution that is not a Non-Reporting Cayman Islands Financial Institution. o) The term "Non-Reporting Cayman Islands Financial Institution" means any Cayman Islands Financial Institution, or other Entity organized under the laws of the Cayman Islands, that is described in Annex II as a Non-Reporting Cayman .
Anti oxidation, Anti aging Anti oxidation, Anti aging Anti oxidation, Anti aging Skin regeneration, Nutrition, Anti wrinkle Anti oxidation, Anti aging Anti oxidation Whitening Whitening Effects Skin Whitening, Anti oxidant Anti inflammatory, Acne Anti oxidant, Anti inflammatory Skin smooth and glowing Anti oxidant, Anti inflammatory Anti ageing .
Terrorist and criminal organizations also rely upon money laundering and financial crime to conceal both their funding sources and the nature of their activities from authorities. Thus, anti-money laundering, anti-corruption and anti-terrorism strategies are . Anti-money laundering techniques, financial crime prevention and asset tracing are .
The Cayman Islands is a British Crown Colony made up of three islands. Grand Cayman is located 480 miles south of Miami. Little Cayman and Cayman Brac are 80 miles to the northeast of Grand Cayman. They are an attractive mix of Caribbean charm and American efficiency. The islands are emerging pe
The Cayman Islands, a United Kingdom Overseas Territory, with an approximate population of 40,000, are comprised of three islands: Grand Cayman, Cayman Brac and Little Cayman. Located 480 miles south of Miami and 180 miles west of Jamaica, the largest island is Grand Cayman with an area of
Cayman International School Elementary School Handbook 2009/10 CAYMAN INTERNATIONAL SCHOOL ELEMENTARY SCHOOL STUDENT/PARENT HANDBOOK 2009/2010 Cayman International School Owned and Operated by ISS (Cayman) Ltd P O Box 31364 95 Minerva Drive, Camana Bay Grand Cayman, KY1 - 1206 Cayman Islands Tel: 345-945-4664, Fax: 345-945-4650
The Alex Rider series is a fast-paced and action-packed set of books, ideal for lovers of spies and action. Teen readers will adore this unforgettable and enthralling series. Tomasz Hawryszczuk, age 9 This series of books is a must read for anyone over the age of 9 who likes spy stories, gadgets and danger. Best books ever! The Alex Rider series is an amazing set of books based on a 14 year .
