The European Union’s (EU) resolution to take away the Cayman Islands from its listing of high-risk third international locations coping with anti-money laundering and countering the financing of terrorism (AML/CFT) deficiencies has sparked reward for its potential to considerably broaden investor selections and gasoline innovation.
The Cayman Islands will probably be faraway from the EU’s black listing on 7 February after it ‘strengthened the effectiveness’ of its AML/CFT regimes and ‘addressed technical deficiencies’, the EU has stated.
It follows the evaluation by the Monetary Motion Job Power (FATF) in October 2023 that concluded the Cayman Islands complies with international AML requirements.
Cayman Finance, representing the Cayman Islands’ monetary providers trade, has applauded the EU’s recognition. CEO Steve McIntosh commented: “The Cayman Islands Authorities and monetary providers trade share a strong dedication to making sure that our jurisdiction meets international requirements whereas defending the rights of buyers, asset managers, and different shoppers.
“The EU’s acknowledgement of the power of the Cayman Islands’ AML regime is simply the newest instance of how we collaborate to translate that dedication into an efficient authorized and regulatory framework.”
Authorities response
The Islands Authorities praised civil servants, regulators in addition to trade members for contributing to the milestone.
“The Cayman Islands Authorities totally understands the importance of this achievement, and what it means for our worldwide repute,” stated the Deputy Premier and Minister for Monetary Companies, the Hon. André Ebanks.
“My Authorities colleagues and I are profoundly grateful for the dedication of the various civil servants, regulators and trade members who walked the discuss, incomes our regime this recognition as a sound place for enterprise. And we reaffirm our dedication with every milestone we obtain.”
“Discussions between the EU and the Cayman Islands – on a spread of monetary services- associated issues, together with our delisting – have been extremely helpful in deepening our mutual understanding, and I significantly observe the optimistic, open strategy that more and more characterises our relationship. Being faraway from the EU’s AML listing paves the way in which for additional dialogue on the coverage targets we pursue.”
Enhanced selections for buyers
The EU’s resolution improves selections for buyers by eliminating a requirement that European buyers conduct enhanced due diligence of Cayman Islands’ entities. The EU’s motion means Article 4 of the EU Securitisation Regulation will not prohibit the institution of securitisation particular functions entities (SSPEs) within the Cayman Islands. Buyers will be capable of select to make use of a SSPE within the Cayman Islands or another jurisdiction not that includes on the EU AML listing.
“Making certain our authorized and regulatory regime meets international requirements opens up new alternatives for buyers,” MccIntosh additionally added. “We stay up for utilizing this improvement to advertise the Cayman Islands monetary providers trade as an modern chief that gives stability and development.”
