The IMF report detailing its assessment of the Cayman Islands supervision and regulatory practices against Basel Committee, IOSCO, IAIS and FATF standards was finalized recently. A spokesman for the Cayman Islands Government has said: " We believe the results are excellent and are looking forward to sharing them with the global business community....(they) are a welcome affirmation of the quality of our regulatory regime" and "as a leading financial services jurisdiction, the Cayman Islands is committed to its role in supporting global anti-crime efforts – the IMF assessment confirms that Cayman’s legislation and practice delivers effective compliance with international anti-money laundering (AML) and combating the financing of terrorism (CFT) standards".
In summary, the report gives Cayman high marks for :
Financial services regulation: the report notes an extensive program of legislative, rule and guideline development which has introduced an increasingly effective system of regulation, both formalizing earlier practices, and introducing enhanced procedures.
Anti-money laundering efforts: the IMF recognizes that "The Cayman Islands has been a leader in developing anti-money laundering programs throughout the Caribbean region" and has "an intense awareness of AML/CFT....supported by a sound supervisory program".
International cooperation: the IMF reports a high level of compliance with international standards in all sectors (banking, securities, insurance, AML/CFT regime).
A high degree of professionalism in the public and private sectors of the financial services industry: the report acknowledges the highly developed and professional infrastructure which services all aspects of the Cayman Islands financial services sector including banking, captive insurance and mutual funds.
The IMF report is important to all those who use the Cayman Islands for financial transactions because it provides an objective, third-party reassurance that the Cayman Islands’ regulatory and compliance frameworks measure up very well to recognized international standards in the various areas assessed. It also acknowledges Cayman’s strong compliance culture and the professionalism of industry participants.
For a full version of the report visit the Cayman Islands Government web site at www.gov.ky.
