FATF Status

The Cayman Islands are  no longer on the FATF AML Deficiency list.

Latest FATF Statement  -  27 October 2023

The FATF welcomes the Cayman Islands’ significant progress in improving its AML/CFT regime. The Cayman Islands strengthened the effectiveness of its AML/CFT regime to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in February 2021 related to (1) applying sanctions that are effective, proportionate and dissuasive, and taking administrative penalties and enforcement actions against obliged entities to ensure that breaches are remediated effectively and in a timely manner; (2) imposing adequate and effective sanctions in cases where relevant parties (including legal persons) do not file accurate, adequate and up to date beneficial ownership information; and (3) demonstrating that they are prosecuting all types of money laundering in line with the jurisdiction’s risk profile and that such prosecutions are resulting in the application of dissuasive, effective, and proportionate sanctions. The Cayman Islands is therefore no longer subject to the FATF’s increased monitoring process.

The Cayman Islands should continue to work with CFATF to sustain its improvements in its AML/CFT system.

EU List of High Risk Countries

On 7th February 2024, the Cayman Islands was removed from the EU List of High Risk Countries.

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.

US Department of State Money Laundering assessment (INCSR)

Cayman Islands is categorised by the US State Department as a Country/Jurisdiction of Primary Concern in respect of Money Laundering and Financial Crimes.

Overview

The Cayman Islands, a United Kingdom (UK) overseas territory, is a major international financial center.  It is an important investment fund jurisdiction, the seventh largest foreign holder of U.S. Treasury securities, the 16^th largest holder of international banking assets, and 14^th largest holder of international banking liabilities.  As of June 2021, the Cayman Islands had 110 banks; 164 trust company licenses; 147 licenses for company management and corporate service providers; 682 insurance companies; and five money service businesses (MSBs).  As of September 2021, there were 115,500 companies incorporated or registered in the Cayman Islands, 12,676 licensed/registered mutual funds, and 14,305 registered private funds.  The Cayman Islands remains a high-risk jurisdiction for money laundering.

The Cayman Islands has an established anti-money laundering/combating the financing of terrorism/counter-proliferation financing (AML/CFT/CFP) regime.  The government is committed to strengthening its AML/CFT/CFP framework.

EU Tax Blacklist

On 6th October 2020, the Cayman Islands was removed from the EU list after it adopted new reforms to its framework on Collective Investment Funds in September 2020.

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           N/A

World Governance Indicator – Control of Corruption              67

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With no direct taxation, the islands are a thriving offshore financial center. More than 93,000 companies were registered in the Cayman Islands as of 2008, including almost 300 banks, 800 insurers, and 10,000 mutual funds. A stock exchange was opened in 1997. Nearly 90% of the islands' food and consumer goods must be imported. The Caymanians enjoy a standard of living comparable to that of Switzerland.

Tourism is also a mainstay, accounting for about 70% of GDP and 75% of foreign currency earnings. The tourist industry is aimed at the luxury market and caters mainly to visitors from North America. Total tourist arrivals exceeded 1.9 million in 2008, with about half from the US.

Agriculture - products:
vegetables, fruit; livestock; turtle farming

Industries:
tourism, banking, insurance and finance, construction, construction materials, furniture

​Exports - commodities:
turtle products, manufactured consumer goods

Imports - commodities:
foodstuffs, manufactured goods, fuels

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Country Links

Cayman Islands Monetary Authority

Financial Reporting Authority (FRA)

General Registry