FATF grey list decision gets Forum thumbs up
The news that Cayman has been removed from the Financial Action Task Force’s (FATF) grey list was welcomed by the Cayman Islands Regulatory Update discussion panel at the first day of the Cayman Captive Forum.
The panel was made up of George Kamau, Deputy Head Insurance Supervision Division of the Cayman Islands Monetary Authority, (CIMA), Derek Stenson, partner at Conyers and Dara Keogh, managing partner at Grant Thornton Cayman Islands.
Stenson said that the FATF decision was good news for Cayman and stressed the amount of work that had been done by the Caymanian Government to get the domicile off the grey list. Kamau stressed that it was important for the government to stay off the list in the future by making sure that it fully complied with FATF requirements and guidance.
The panel also pointed out that Cayman’s sanction regime is the mirror of the UK’s sanction regime, with sanctions active against Russia due to its war against Ukraine.
The Beneficial Ownership Transparency Bill 2023, which went through Cayman’s Parliament in November, was also highlighted, which removed exemptions legislation and replaced it with different rules, although licenced insurers remain exempt.
The panel also discussed CIMA’s powers when it comes to fining captives and other entities that are in breach of the regulatory rules, stressing that there is a process in place that is clear and fair.
Kamau provided a short guide to recent regulatory changes by CIMA, which keeps a close eye on what is required for captive insurers and other insurance entities on Cayman to stay in compliance with Caymanian law, such as corporate governance and business objectives. CIMA has also recently tweaked the rule and statement of guidance on internal controls, and Kamau underlined that captives must understand recent changes and remain in compliance by reviewing their internal controls.
CIMA has also announced changes to the rule and statement of guidance on reinsurance arrangements, which has a compliance deadline of May 27, 2024, and Kamau called for companies to read the changes carefully and make any subsequent changes as soon as possible.
The panel also stressed the need for good practice in terms of internal audits and making sure regulations are fully complied with as a matter of standard practice.
