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.
Press Release from Carey Olsen, Friday 8 November, 2024. Carey Olsen lawyers have secured 31 individual rankings in the 2025 edition of The Legal 500 Caribbean, including 18 ‘Leading Partner’
European Union legislators have given final approval to the 27-nation bloc’s artificial intelligence law, putting the world-leading rules on track to take effect later this year. Members of the European
The Council of the EU officially adopted the FASTER Directive on 10 December 2024. This is after re-consulting with the European Parliament concerning the agreement of the Council of the EU on the compromise
Following compromises and modifications to the original proposal, the Economic and Financial Affairs Council has adopted the ViDA initiative.The measures are expected to be adopted gradually from 2027