In a significant development for the Cayman Islands, the jurisdiction has been removed from the Financial Action Task Force (FATF) list of countries needing to enhance their anti-financial crime measures.
This achievement, the first of its kind in several years, signifies a notable shift for the British overseas territory, which had previously faced scrutiny over its role in the global financial system.
Exit from EU high-risk catalogue
Following persistent efforts and reforms, the Cayman Islands secured its removal from the European Union’s list of high-risk nations concerning anti-money laundering, counter-terrorist financing, and counter-proliferation financing deficiencies.
This move, announced last week underscores the jurisdiction’s commitment to addressing vulnerabilities within its financial regulatory framework.
Past blacklisting challenges
The Cayman Islands had been blacklisted by the FATF due to perceived weaknesses in its prosecution and sanctions mechanisms related to financial crimes.
This designation had significant implications, impacting the territory’s standing in the international financial community.
Diplomatic endeavors and legal reforms
Overcoming these challenges demanded over two years of dedicated diplomacy and legislative amendments.
Notably, the prosecution of individuals involved in a scandal linked to the regional football association, CONCACAF, played a pivotal role in triggering the delisting process.
The resolution of issues cited by the FATF was instrumental in addressing concerns raised by the European Union, paving the way for the Cayman Islands’ removal from controversial watchlists.
Economic implications
The Cayman Islands’ exit from these contentious lists is poised to have far-reaching implications for its offshore industry.
With renewed confidence in its regulatory framework, the jurisdiction anticipates a resurgence in its financial sector.
This development not only bolsters the reputation of the Cayman Islands but also enhances its attractiveness as a global financial hub.
The World Bank priced the first CHF digital bond by an international issuer, which will settle using Swiss Franc wholesale Central Bank Digital Currency (wCBDC) provided by the Swiss National Bank (SNB).
An exchange house has been fined Dh200 million ($54.45 million) by the UAE Central Bank for breaching anti-money laundering regulations, as the fight against illegal financial activity continues. The
Press Release from: Carey Olsen, Wednesday 17 January, 2024. Lawyers from Carey Olsen’s corporate team have acted as Jersey counsel for long standing client, Wentworth Resources plc (“Wentworth”),
Roger Ver, famously known as “Bitcoin Jesus,” is locked in a $48 million tax dispute with the IRS. The accusations stem from alleged tax evasion after Ver renounced his U.S. citizenship. In December