Anti-Money Laundering Regulations (2025 Revision)

The Anti-Money Laundering Regulations (2025 Revision) consolidate the 2017 regulations and all subsequent amendments. These regulations impose strict aml-compliance obligations on persons carrying out "relevant financial business" in or from the Cayman Islands.

Core Principles and Due Diligence

• Risk-Based Approach: Entities must assess money laundering, terrorist financing, and proliferation financing risks, taking into account credible sources like FATF evaluations.
• Customer Due Diligence (CDD): Thorough identification and verification of customers and their beneficial-ownership.
• Simplified and Enhanced Due Diligence: Rules for applying simplified CDD for low-risk scenarios and enhanced CDD for high-risk situations (e.g., politically exposed persons).
• Record Keeping: Detailed records of transactions and CDD must be maintained for at least five years.
• Key Roles: Mandatory appointment of an Anti-Money Laundering Compliance Officer (AMLCO), Money Laundering Reporting Officer (MLRO), and Deputy MLRO.

Sector-Specific Rules

• dnfbps: Part 12A brings DNFBPs (real estate agents, precious metals/stones dealers, accountants, and attorneys) into the regulatory fold, subjecting them to specific supervisory authorities, registration requirements, and compliance obligations.
• Virtual Asset Service Providers (VASPs): Part 10A explicitly applies the "Travel Rule" to VASPs, requiring them to collect, verify, and transmit originator and beneficiary information for all virtual asset transfers.

Enforcement and Fines

Failure to comply with these regulations can result in severe administrative-fines enforced by the relevant Supervisory Authority (like cima or a designated DNFBP authority) or criminal prosecution. The regulations outline detailed procedures for imposing minor, serious, and very serious fines, including provisions for "discount agreements."

Related pages

• aml-compliance
• proceeds-of-crime-act-2024
• administrative-fines
• cima
• virtual-assets