🏝️ Cayman Islands removed from FATF's anti-money laundering grey list
After over two years of efforts, the jurisdiction regains its status as a well-regulated financial hub
The Cayman Islands has been removed from the Financial Action Task Force's (FATF) anti-money laundering grey list, marking the end of a two-year struggle. The jurisdiction was added to the list in February 2021 due to its failure to effectively prosecute or sanction those involved in financial crime. The decision to remove Cayman from the list was announced at the FATF's 25-27 October plenary in Paris. The move is seen as a validation of the Cayman Islands' anti-money laundering (AML) regime and its effectiveness in deterring, detecting, and prosecuting financial crimes. 🏛️
The Cayman Islands' removal from the list completes its participation in the FATF's 4th-Round Mutual Evaluation process. The 5th Round process is set to begin in 2025, with the Cayman Islands expecting its evaluation in 2026. Officials are already preparing for the next round, using lessons learned from the 4th Round to ensure that local policies and legislation align with any changes to the FATF standard and evaluation methodology. The removal from the grey list is seen as a significant achievement, reinforcing the Cayman Islands' reputation as a well-regulated jurisdiction in AML matters. 📈
Despite the challenges, the FATF process has led to improvements in the domestic AML regime. The process has provided the opportunity to better understand and incorporate international standards into the local regime, improving effectiveness in fighting financial crime. Premier Wayne Panton lauded the delisting as a "culmination of the tireless efforts, advocacy and diplomacy" by public servants, the financial services industry, and the public. The delisting has been welcomed by various players in the offshore sector, who see it as a validation of the Cayman Islands' regulatory capacity and practices. 🎉
