Cayman Islands Country Summary
Medium Risk
View full Ratings TableSanctions
Lower Concern
FATF AML Deficient List
Lower Concern
Terrorism
Medium Concern
Corruption
Medium Concern
US State ML Assessment
Higher Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Higher Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
The Cayman Islands is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in The Cayman Islands was undertaken in 2021. According to that Evaluation, The Cayman Islands was deemed Compliant for 22 and Largely Compliant for 18 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.
Sanctions
There are currently no international sanctions in force against Cayman Islands.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | NA |
| World Bank: Control of Corruption Percentile Rank | 65 |
The Cayman Islands face challenges related to crime and corruption, although specific metrics are not provided. Despite these issues, the region demonstrates a degree of resilience to crime, suggesting ongoing efforts to maintain stability and integrity within its systems.
Economy
The economy of the Cayman Islands is predominantly driven by financial services and tourism, which collectively contribute to 50-60% of its Gross Domestic Product (GDP). With a high GDP per capita of approximately $109,684, the territory enjoys one of the highest living standards in the Caribbean, although it grapples with issues such as a high cost of living and wealth inequality. The investment climate remains attractive due to its zero tax rate, despite facing scrutiny over financial practices, prompting the government to enhance regulatory measures to uphold its reputation as a leading offshore financial center.
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