As Cayman moves to clamp down on money laundering with new regulations, it is mirroring many global financial hubs in increasing individual responsibility and liability for money laundering controls.
Here, we are witnessing historically under-regulated money laundering risk in the funds industry be addressed through directive regulations guided by FATF recommendations... certainly a positive step in the fight against global money laundering.
One of the biggest changes is that the regulations now determine that both regulated and unregulated funds have until Sept. 30 to nominate three types of anti-money laundering (AML) officers. New funds were already expected to have appointed the designated AML officers since June 1. Crucially, the money laundering reporting officer, the deputy money laundering reporting officer and the AML compliance officer must be natural persons, rather than a service provider entity. Until now most regulated funds delegated the AML functions to their administrator or another service provider, especially in cases where a fund did not have any employees.