Cayman Islands
Sanctions
No
FATF AML Deficient List
No
Higher Risk
US Dept of State Money Laundering assessment
Not on EU White list equivalent jurisdictions
Offshore Finance Centre
EU list of non-cooperative jurisdictions for tax purposes
Medium Risk
Weakness in Government Legislation to combat Money Laundering
ANTI-MONEY LAUNDERING
FATF Status
The Cayman Islands is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in The Cayman Islands was undertaken in 2019. According to that Evaluation, The Cayman Islands was deemed Compliant for 12 and Largely Compliant for 15 of the FATF 40 Recommendations. It was deemed 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 UK overseas territory, is a major international financial center. It is the seventh largest foreign holder of U.S. Treasury securities and the 12th largest holder of international assets and liabilities. As of September 2019, the Cayman Islands had 122 banks; 144 trust company licenses; 144 licenses for company management and corporate service providers; 776 insurance-related licenses; and five MSBs that provide a range of services including: banking, structured finance, investment funds, trusts and company formation, and management. There are 110,451 companies incorporated or registered in the Cayman Islands and 10,937 licensed/registered mutual funds.
The Cayman Islands has an established AML/CFT/counter-proliferation financing regime. The government is committed to strengthening its AML/CFT framework.
EU Tax Blacklist
The Cayman Islands are on the EU list of non-cooperative jurisdictions for tax purposes as it does not have appropriate measures in place relating to economic substance in the area of collective investment vehicles.
SANCTIONS
There are no international sanctions currently in force against this country.
BRIBERY & CORRUPTION
Rating (100-Good / 0-Bad)
Transparency International Corruption Index N/A
World Governance Indicator – Control of Corruption 68
ECONOMY
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
Country Links
Cayman Islands Monetary Authority
Financial Reporting Authority (FRA)
General Registry
Other Useful Links
FATF
US State Department
Transparency International
World Bank
CIA World Factbook