CAYMAN ISLANDS: Cayman Finance applauds EU recognition of the strength of Cayman Islands AML regime and decision to remove jurisdiction from list of high-risk countries

Press Release from Cayman Finance, Monday 22 January, 2024.

Cayman Finance is applauding the European Union’s recognition of the effectiveness of the Cayman Islands’ AML/CFT regimes and decision to remove Cayman Islands from its list of “high-risk third countries”. The change will become effective on 7 February.

The EU’s decision is based, in part, on the assessment of the Financial Action Task Force (FATF) on 27 October 2023 that the Cayman Islands complies with global AML standards. The United Kingdom has also acknowledged the Cayman Islands AML compliance by removing the jurisdiction from its own list of high-risk third countries.

Commitment and collaboration
Cayman Finance CEO Steve McIntosh credited public and private sector leadership for the progress that led to this important achievement.

“The Cayman Islands Government and financial services industry share a solid commitment to ensuring that our jurisdiction meets global standards while protecting the rights of investors, asset managers, and other clients.

“The EU’s acknowledgement of the strength of the Cayman Islands’ AML regime is just the most recent example of how we collaborate to translate that commitment into an effective legal and regulatory framework.”

The EU previously conducted a detailed assessment of the Cayman Islands tax regime and concluded that the jurisdiction met its standards for transparency, fairness and tax good governance.

Deputy Premier and Minister for Financial Services André Ebanks said in a press release, “The Cayman Islands Government fully understands the significance of this achievement, and what it means for our international reputation.

“My government colleagues and I are profoundly thankful for the dedication of the many civil servants, regulators and industry members who walked the talk, earning our regime this recognition as a sound place for business. And we reaffirm our commitment with each milestone we achieve.”

Enhanced choices for investors
The EU’s decision improves choices for investors by eliminating a requirement that European investors conduct enhanced due diligence of Cayman Islands’ entities. The EU’s action means Article 4 of the EU Securitisation Regulation will no longer prohibit the establishment of securitisation special purposes entities (SSPEs) in the Cayman Islands. Investors will be able to choose to use a SSPE in the Cayman Islands or any other jurisdiction not featuring on the EU AML list.

“Ensuring our legal and regulatory regime meets global standards opens up new opportunities for investors,” concluded McIntosh. “We look forward to using this development to promote the Cayman Islands financial services industry as an innovative leader that offers stability and growth.”

1 November 2024

UK: Budget 2024: Key points announced in Chancellor Rachel Reeves’ autumn statement

The Chancellor announced billions of pounds in extra taxes and borrowing to fund a huge investment programme in transport and other infrastructure projects and to improve some public services such

Read More
3 January 2025

ASIA: Family offices to favour Taiwan, India and US in 2025; may increase China exposure

Taiwan, India and the US will be favoured by high-net-worth individuals and family offices in 2025 and they might also invest more in mainland China and Hong Kong due to stimulus measures from Beijing,

Read More
5 June 2024

PORTUGAL: Portugal toughens migration rules ahead of upcoming EU elections

The Portuguese government has put an end to an exceptional regime that allowed foreigners to enter Portugal and then apply for a residence permit. Portugal announced a new plan to toughed immigration

Read More
10 January 2025

SINGAPORE: Malaysia unveils tax breaks for new economic zone with Singapore

Malaysia unveiled a slew of tax incentives to lure investors to its joint special economic zone (SEZ) with Singapore that seeks to add US$26 billion ($35.5 billion/RM117 billion) per year to the Malaysian

Read More