Appointment of AML Officers in the Cayman Islands
The Cayman Islands Monetary Authority (CIMA) recently issued clarification of its Guidance Notes in respect of the Anti-Money Laundering Regulations to make it clear that all funds (whether regulated by CIMA or not) conducting “relevant financial business” in or from within the Cayman Islands are required to appoint individuals to act as Anti-Money Laundering Compliance Officer (AMLCO), Money Laundering Reporting Officer (MLRO) and Deputy Money Laundering Reporting Officer (DMLRO, together with the AMLCO and MLRO, AML Officers). CIMA also expects each fund to disclose in its offering document the fact that the fund has designated AML Officers and details as to how investors may obtain further information in respect of these officers.
For further details on the functions and appointment requirements of the AML Officers, please see Cayman Islands’ Anti-Money Launders regime updated and Update: Cayman Islands Anti-Money Laundering Regulations, 2017.
CIMA issued a notification on 24 September 2018 regarding the AML Officer appointment and notification deadlines (CIMA Notification). The deadline for:
- the appointment of AML Officers by an unregulated fund; and
- notifying CIMA (via the REEFS portal) of the appointment of AML Officers by a regulated fund,
have both been extended from 30 September 2018 to 31 December 2018.
Despite the CIMA Notification being silent on this point, CIMA has subsequently confirmed that they still expect regulated funds to appoint AML Officers as soon as they can and, in any event, by 30 September 2018
The specific next steps applicable to you will depend on a number of factors regarding your business, its structure, the AML regime being applied (if not the Cayman Islands AML regime) and your role within the industry. Please speak to Sailaja Alla in Cayman or your usual Appleby contact to understand fully any expanded obligations, document updates or new contractual agreements that may be required.