Proliferation Financing (Prohibition) Act (2017 Revision)
Summary
Legislation aimed at preventing the financing of the development, production, or facilitation of weapons of mass destruction (nuclear, radiological, biological, or chemical weapons).
Sources
Proliferation_Financing_(Prohibition)_Act_(2017_Revision).pdf
Last Updated
2026-04-27
The Proliferation Financing (Prohibition) Act targets the financial networks supporting the proliferation of weapons of mass destruction, aligning the Cayman Islands with international UN Security Council resolutions.
Key Provisions
- Asset Freezing: Mandates the immediate freezing of funds and economic resources owned, held, or controlled by designated persons (as identified by the UN Security Council).
- Financial Reporting Authority (FRA) Directions: The FRA may issue directions to persons operating in the financial sector regarding business relationships with designated persons or countries of concern.
- Enhanced Due Diligence: Directions from the FRA can mandate enhanced customer due diligence (CDD) and ongoing monitoring of transactions and business relationships with listed persons.
- Systematic Reporting: The FRA may require relevant persons to provide systematic reports and documents regarding transactions with listed persons.
- Penalties: Non-compliance with directions or freezing orders can result in civil penalties (up to seventy thousand dollars) imposed by the FRA or criminal conviction with fines and imprisonment.