CFATF Cayman Islands Mutual Evaluation Ratings

1. Anti-money laundering and counter-terrorist financing measures in the Cayman Islands – Mutual Evaluation Report - 2019 1
Anti-money laundering and counter-
terrorist financing (AML/CFT)
measures in the Cayman Islands
Fourth Round Mutual Evaluation
Ratings
March 2019
http://www.fatf-gafi.org/publications/mutualevaluations/documents/mer-Cayman-Islands-2019.html

2. Anti-money laundering and counter-terrorist financing measures in the Cayman Islands – Mutual Evaluation Report - 2019
Ratings – Effectiveness (1/3)
2
Immediate outcome of an effective system to combat money
laundering (ML) and terrorist financing (TF)
Extent to
which
Cayman
Islands
achieved this
objective
1. ML and TF risks are understood and, where appropriate,
actions co-ordinated domestically to combat ML and TF
Moderate
2. International co-operation delivers appropriate information,
financial intelligence, and evidence, and facilitates action
against criminals and their assets
Moderate
3. Supervisors appropriately supervise, monitor and regulate
financial institutions and designated non-financial
businesses and professions (DNFBPs) for compliance with
AML/CFT requirements commensurate with their risks.
Low
4. Financial institutions and DNFBPs adequately apply AML/CFT
preventive measures commensurate with their risks, and
report suspicious transactions.
Low

3. Anti-money laundering and counter-terrorist financing measures in the Cayman Islands – Mutual Evaluation Report - 2019 3
Immediate outcome of an effective system to combat money
laundering (ML) and terrorist financing (TF)
Extent to
which
Cayman
Islands
achieved this
objective
5. Legal persons and arrangements are prevented from misuse
for money laundering or terrorist financing, and information
on their beneficial ownership is available to competent
authorities without impediments
Moderate
6. Financial intelligence and all other relevant information are
appropriately used by competent authorities for money
laundering and terrorist financing investigations.
Low
7. Money laundering offences and activities are investigated
and offenders are prosecuted and subject to effective,
proportionate and dissuasive sanctions
Low
8. Proceeds and instrumentalities of crime are confiscated. Moderate
Ratings – Effectiveness (2/3)

4. Anti-money laundering and counter-terrorist financing measures in the Cayman Islands – Mutual Evaluation Report - 2019 4
Immediate outcome of an effective system to combat money
laundering (ML) and terrorist financing (TF)
Extent to
which
Cayman
Islands
achieved this
objective
9. Terrorist financing offences and activities are investigated
and persons who finance terrorism are prosecuted and
subject to effective, proportionate and dissuasive sanctions.
Low
10. Terrorists, terrorist organisations and terrorist financiers are
prevented from raising, moving and using funds, and from
abusing the non-profit sector.
Moderate
11. Persons and entities involved in the proliferation of weapons
of mass destruction are prevented from raising, moving and
using funds, consistent with the relevant United Nations
Security Council Resolutions.
Moderate
Ratings – Effectiveness (3/3)

5. Anti-money laundering and counter-terrorist financing measures in the Cayman Islands – Mutual Evaluation Report - 2019 5
Ratings – Effectiveness
00
6
5
High
Substantial
Moderate
Low

6. 26-Mar-19 6
Ratings – technical compliance
(1/5)
AML/CFT POLICIES AND COORDINATION
1. Assessing risks & applying a risk-based approach Part ParPa Pa Partially Compliant
2. National cooperation and coordination Part ParPa Pa Partially Compliant
MONEY LAUNDERING AND CONFISCATION
3. Money laundering offence ComComCo Co Compliant
4. Confiscation and provisional measures LargLarLarLar Largely Compliant
TERRORIST FINANCING AND FINANCING OF PROLIFERATION
5. Terrorist financing offence ComComCo Co Compliant
6. Targeted financial sanctions related to terrorism & terrorist
financing LargLarLarLar Largely Compliant
7. Targeted financial sanctions related to proliferation LargLarLarLar Largely Compliant
8. Non-profit organisations LargLarLarLar Largely Compliant

7. 26-Mar-19
7
Ratings – technical compliance
(2/5)
PREVENTIVE MEASURES
9. Financial institution secrecy laws ComCo Co Co Compliant
Customer due diligence and record keeping
10. Customer due diligence LargLarLarLar Largely Compliant
11. Record keeping ComCo Co Co Compliant
Additional measures for specific customers and activities
12. Politically exposed persons ComCo Co Co Compliant
13. Correspondent banking ComCo Co Co Compliant
14. Money or value transfer services LargLarLarLar Largely Compliant
15. New technologies LargLarLarLar Largely Compliant
16. Wire transfers LargLarLarLar Largely Compliant

8. 26-Mar-19
8
Ratings – technical compliance
(3/5)
PREVENTIVE MEASURES (continued)
Reliance, Controls and Financial Groups
17. Reliance on third parties LargLarLarLar Largely Compliant
18. Internal controls and foreign branches and subsidiaries ComCo Co Co Compliant
19. Higher-risk countries Part Pa Pa Pa Partially Compliant
Reporting of suspicious transactions
20. Reporting of suspicious transactions ComCo Co Co Compliant
21. Tipping-off and confidentiality LargLarLarLar Largely Compliant
Designated non-financial Businesses and Professions (DNFBPs)
22. DNFBPs: Customer due diligence Part ParPa Pa Partially Compliant
23. DNFBPs: Other measures Part ParPa Pa Partially Compliant

9. 26-Mar-19
9
Ratings – technical compliance
(4/5)
TRANSPARENCY AND BENEFICIAL OWNERSHIP OF LEGAL
PERSONS AND ARRANGEMENTS
24. Transparency and beneficial ownership of legal persons Part ParPa Pa Partially Compliant
25. Transparency and beneficial ownership of legal arrangements Part ParPa Pa Partially Compliant
POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES
AND OTHER INSTITUTIONAL MEASURES
Regulation and Supervision
26. Regulation and supervision of financial institutions Part ParPa Pa Partially Compliant
27. Powers of supervisors ComComCo Co Compliant
28. Regulation and supervision of DNFBPs Part ParPa Pa Partially Compliant
Operational and Law Enforcement
29. Financial intelligence units Part ParPa Pa Partially Compliant
30. Responsibilities of law enforcement and investigative
authorities LargLarLarLar Largely Compliant
31. Powers of law enforcement and investigative authorities LargLarLarLar Largely Compliant
32. Cash couriers Part ParPa Pa Partially Compliant

10. 26-Mar-19
10
Ratings – technical compliance
(5/5)
POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES
AND OTHER INSTITUTIONAL MEASURES (continued)
General Requirements
33. Statistics ComCo ComCom Compliant
34. Guidance and feedback Part Pa ParPar Partially Compliant
Sanctions
35. Sanctions Part Pa ParPar Partially Compliant
INTERNATIONAL COOPERATION
36. International instruments LargLarLarLar Largely Compliant
37. Mutual legal assistance ComCo ComCom Compliant
38. Mutual legal assistance: freezing and confiscation LargLarLarLar Largely Compliant
39. Extradition ComCo ComCom Compliant
40. Other forms of international cooperation LargLarLarLar Largely Compliant

11. Anti-money laundering and counter-terrorist financing measures in the Cayman Islands – Mutual Evaluation Report - 2019 11
Ratings – technical compliance
12
15
13
0
Compliant
Largely compliant
Partially compliant
Non compliant