Is Your Cayman Entity Compliant with P&P, ABM and AML Obligations?

Cayman Islands entities regulated by the Cayman Islands Monetary Authority (“CIMA”) are required to comply with ongoing legal and regulatory requirements established in their Written Policies and Procedures (“P&P”) including holding Annual Board Meetings (“ABM”) and Annual Anti-Money Laundering (“AML”) Training. Failure to comply with these requirements can result in serious penalties.

These requirements apply to all entities (such as companies, partnerships and trusts) who are carrying out ‘relevant financial business’ including entities registered with or licensed by CIMA:

• Mutual Funds;
• Private Funds;
• Securities Managers, Arrangers and Advisers;
• Virtual Asset Service Providers;
• Mutual Fund Administrators;
• Market-Makers;
• Broker-Dealers;
• Money Service Businesses;
• Company Managers;
• Corporate Service Providers;
• Banks;
• Insurance Businesses; and
• Trusts Businesses.

A list of relevant financial businesses can be accessed in the Proceeds of Crime Act (as Revised) on pages 160 and 161 (as at time of writing).

Ongoing legal and regulatory requirements include the need to have in place certain P&Ps (subject to penalty) and to comply with the requirements therein.

ABMs must contain sufficient detail to evidence appropriate governing body attention and cover applicable legal and regulatory requirements. A breach of the requirements can result in the imposition of fines or other legal or regulatory action.

AML training requirements are applicable to AML officers, supervisors, managers and senior management (including the board of directors and managers of general partners) and all other appropriate staff. Of note, the AML regime contains penalties that range up to US$1.2 million. It is essential that all staff are up-to-date on the current requirements.  

If you have not held your ABM or your P&P are not up to date, we can provide assistance with drafting bespoke minute materials to meet your entity’s particular requirements, bringing your P&Ps into legal compliance. Please contact our Head of Banking & Regulatory, Jonathan McLean for assistance.

If your annual AML training has not been completed, we can provide live training sessions that are customised to meet your AML requirements. Register for your individual or group compliance training session by contacting our Head of Group Compliance, Reuben Foster..

See more on our client AML and Compliance Training.

See Stuarts full suite of AML and Regulatory Services.