Commentary
Cayman Maintains Dialogue withInternational Regulatory Authorities
The Cayman Islands have vigorously pursuedand implemented effective and appropriate remedies in responseto concerns raised by the Financial Action Task Force.
These laws, which include the Monetary Authority (Amendment) (InternationalCo-operations) Law, 2000 and the Proceeds of Criminal Conduct(Amendment) Money Laundering Regulations Law, 2000 have had aprofound effect in raising the benchmark and providing investorsadditional security of the probity of Caymanís financialsystem.
The laws set out, among other provisions, to expand the role ofthe Cayman Islands Monetary Authority and to require service providersto strictly adhere to standardised anti-money laundering proceduresfor client identification, record-keeping and internal reporting.This builds on the Code of Practice issued in March 2000 underthe Proceeds of Criminal Conduct Law.
"We have embraced the challenges which have been presentedin the past year and have tackled them with the same tenacityand professionalism that have come to be expected from the CaymanIslands. Our goal is constant, to remain the preferred jurisdictionfor quality business. I believe our achievements to date, andparticularly what we have accomplished in the past three months,demonstrate we are on track," the Financial Secretary, theHon. George McCarthy said.
Since June 2000, the Cayman Islands have been engaged in opendialogue with international regulatory authorities and have enactedlegislation that broadens Caymanís existing safeguardsagainst the global phenomenon of money laundering.
Contained in the FATF's own summary report of June 22nd was thestatement that the Cayman Islands ìhas been a leader indeveloping anti-money laundering programs throughout the Caribbeanregion. It has served as president of the CFATF, and it has providedsubstantial assistance to neighboring states in the region.
It has demonstrated exemplary cooperation on law enforcement matters,and uncovered several serious cases of fraud and money launderingotherwise unknown to authorities in FATF member states. In addition,it has closed several financial institutions on the basis of concernsabout money laundering.