This list of 21 countries released by the UK Government replicates the list of countries named by the Financial Action Task Force (FATF) as high-risk or under increased monitoring. All 27 EU member states, along with Iceland, Liechtenstein and Norway from the European Economic Area, are implementing the directive. The EU Commission maintains a list of "high-risk third countries", which typically includes the countries on the FATF Monitoring List but may include others. Financial Action Task Force - High-risk and other monitored jurisdictions. Cayman Islands 6. Luxembourg 7. The Expert Edition contains a detailed overview of 203 jurisdictions and their risk scores based on available data. Moreover, the risk scores are likely to rise even higher after more . This was accompanied with updates to a number of other laws including the Monetary . The government is committed to strengthening its AML/CFT/CFP framework. Countries proposed to be removed: The Bahamas, Botswana, Ghana, Iraq and Mauritius. . "Carey Olsen" in the Cayman Islands is the business name of Carey Olsen Cayman Limited, a . the Cayman Islands made a .
The EU's prescriptive list contains details of third-country jurisdictions which have strategic deficiencies in their Anti-Money Laundering / Counter Terrorist Financing (AML/CFT) regimes that pose significant . This list is often externally referred to as the 'grey list'. The UK government has added Pakistan to the list of undesirable 21 high-risk countries with unsatisfactory money laundering and terrorist financing controls. Walkers has prepared for every outcome and should there be a need to use an alternative jurisdiction to the Cayman Islands, can provide the same level and scope of service in each of its Bermuda, Ireland .
The high-risk third countries are: Albania; Barbados; Burkina Faso; Cambodia; Cayman Islands; Democratic People's Republic of Korea (DPRK)* Haiti; Iran* Jamaica; Jordan; Mali* Malta; Morocco; Myanmar* Nicaragua* Pakistan; Panama; Philippines Cayman Islands and the EU AML High-Risk Third Countries List 19 Jan 2022 On 7 January 2022, the European Commission adopted a draft Delegated Regulation (the "Draft Regulation " ) updating its list of 'high-risk third countries' ("EU AML List") identified as having strategic deficiencies in their anti-money laundering/counter-terrorist financing ("AML/CFT") regimes 1 . Cayman Islands economic substance guide 2021 (Lexology Getting the Deal Through) In this guide, lawyers from our Cayman Islands, Hong Kong, London and Singapore offices outline the latest economic substance requirements for businesses carrying on relevant activities in the Cayman Islands, including the legal framework, enforcement and demonstrating compliance. ContentsPlease click on the links below to jump to the relevant section:GeneralLitigation FundingInitiating a LawsuitPre-trial ProceedingsDiscoveryInjunctive ReliefTrials and HearingsSettlementDamages and JudgmentAppealCostsAlternative Dispute Resolution (ADR)ArbitrationOutlook and COVID-19General General Characteristics of the Legal SystemThe Cayman Islands is a common law jurisdiction. The FATF's grey list includes just 18 other countries, the Cayman Islands being the only overseas territory on the list. On February 7, 2020 the Cayman Islands enacted new legislation for collective investment vehicles. The regulation updated the list (EU List) of high-risk countries identifying those with deficiencies in their AML/CFT regimes. It sets out which jurisdictions will be . Cayman Islands mutual funds which are currently exempted from registration with the Cayman Islands Monetary Authority ("CIMA") under Section 4(4) of the Mutual Funds Law (2020 Revision) on the basis that (i) the shares or interests are held by . Cayman Islands Netherlands Cyprus New Zealand Denmark Norway Finland Portugal France Singapore Germany South Africa Gibraltar Spain Cayman Islands undertook a full risk assessment of SIBL-EPs. On the 7th of January 2022 a draft Delegated Regulation was adopted by the European Commission. 01 July 2021. High-risk third country Date of entry into force; Afghanistan: 23 September 2016: Barbados: 1 October 2020: Burkina Faso: 13 March 2022: Cambodia: 1 October 2020: Cayman Islands: 13 March 2022: Democratic People's Republic of Korea (DPRK) 23 September 2016: Haiti: 13 March 2022: Iran: 23 September 2016: Jamaica: 1 October 2020: Jordan: 13 March 2022: Mali: 13 March 2022: Morocco: 13 March 2022 This inclusion is a technicality which stems from the addition of the Cayman Islands to the Financial Action Task Force's (FATF) list of jurisdictions under increased monitoring in the area of AML/CFT/CPF (the FATF Monitoring List), commonly referred to as the FATF 'grey . 1 Article 9 of the Fourth Money Laundering Directive (EU) 2015/849 ("MLD4") empowers the European Commission to adopt delegated acts to identify high-risk third-countries. Financial statements must be prepared in accordance with International Financial Reporting Standards or Generally Accepted Accounting Principles of the United States, Japan, Switzerland or other non-high-risk jurisdiction. FAFT High-Risk and Monitored Jurisdictions. . Between 2014 and 2018, only 0.005% of the total outflows sent from the Cayman Islands were to tier 1 and 2 high risk jurisdictions through SWIFT single customer transfers, 74% of which was to tier 1 high risk countries.
carried out as part of the deposit-taking institution's sector risk assessment. Details. A copy of these documents has been uploaded on the . Japan or Switzerland or any non-high risk jurisdiction. Switzerland or any other non- high risk jurisdiction. The Cayman Islands enacted new and revised legislation to the Mutual Funds Law (MFL) and the Private Funds Law (PFL), which directly impacts entities domiciled in the Cayman Islands. Burkina Faso. 0 = low risk to 10 = high risk Income Region Rank Jurisdiction Overall Score; 1: . Cayman Islands . The FATF blacklist has been issued by the FATF since 2000, and lists countries which FATF judges to be non-cooperative in the global fight against money laundering and terrorist financing . 3. Regulations around crypto currencies are always evolving, and the Cayman Islands took a step towards becoming one of the preferred locations for blockchain based companies last week when legislative assembly passed the Virtual Asset (Service Provider) Law, 2020. The EU's AML blacklist is a list of countries deemed 'high risk' under the AML Directive - ie, those whose AML/CFT regimes have strategic deficiencies which pose a significant . On 10 January 2022, the European Commission published an amendment to the delegated regulation of high-risk jurisdictions for anti-money laundering and counter terrorist financing.. The identification, collection and analysis of relevant data was conducted by a specialised . An unfortunate by-product of this relaxed regulatory atmosphere is the significant money-laundering and greater financial crime concerns in the Cayman Islands; which has led to them being placed on FATF's Grey List and the European Union's High Risk Third Country list as a jurisdiction with significant strategic deficiencies in its anti . Last March we published an advisory on the Cayman Islands inclusion on the Financial Action Task Force's list of "jurisdictions under increased monitoring" (FATF Monitoring List), noting that the EU Commission maintains a list of "high-risk third countries" (EU AML List), which typically includes the countries on the FATF Monitoring List but may include others. On 25 February 2021, the Financial Action Task Force ("FATF") added the Cayman Islands to its "Monitoring List", i.e. Germany 9. The full GLI guide to blockchain and cryptocurrency regulation 2022 covers 29 jurisdictions and includes 17 general chapters. While no significant issues were identified with the Cayman Islands compliance regimes . The EU listing process also had a very positive impact as most jurisdictions engaged constructively with the EU during the listing process. Many made concrete, high level commitments to improve their standards, as a result of the EU screening exercise. (CNS): The financial services industry in the Cayman Islands is bracing itself for another rocky year, as this jurisdiction could be included on the European Union's list of high-risk third countries for money laundering that pose significant threats to the financial system of the Union. High-risk jurisdictions have significant strategic deficiencies in their regimes to counter money laundering, terrorist financing, and financing of proliferation. 2 Countries proposed to be added: Burkina Faso, Cayman Islands, Haiti, Jordan, Mali, Morocco, the Philippines, Senegal, and South Sudan. The Cayman Islands will be included on the EU's list of 'high risk third countries' (the EU AML List) on 13 March 2022. List B: Jurisdictions that May Pose a Higher Risk This list covers countries and territories that may pose a higher risk of money laundering or terrorist financing. The Cayman Islands has an established anti-money laundering/combating the financing of terrorism/counter-proliferation financing (AML/CFT/CFP) regime. On 7 February 2020, the Cayman Islands Government enacted the Private Funds Law 2020 (PF Law) and an amendment to the Mutual Funds Law (2020 Revision) (MFL Amendment).The legislation is a result of certain EU and other international recommendations and has been developed to align the Cayman Islands investment fund regulatory regime with other jurisdictions. Securitisation Regulation, which references the FATF list of "high risk jurisdictions", which does not include the Cayman Islands. Relevant Businesses should consider the statements issued as part of their risk assessment and consider whether enhanced due diligence would be appropriate. 5. More challenges ahead for offshore sector in EU. Jurisdiction Risk Level; Afghanistan: Very High: Aland Islands: Medium: Albania: Very High: Algeria: High: Andorra: Low: Angola: High: Anguilla (UK) . The Cayman Islands stayed on FATF's monitoring list when it was updated in October 2021 and the European Commission has now formally proposed to add the Cayman Islands to its AML blacklist in a document dated 7 January. Accounts will need to be prepared in accordance with International Financial Reporting Standards (IFRS) or the generally accepted accounting principles of the United States of America, Japan, Switzerland or any other non high-risk jurisdiction. Updates . It has a formidable reputation as an offshore financial centre, is welcoming to foreigners, offers easy second-passport opportunities, permanent residency and citizen possibilities under the friendly nations visa program is just 5,000 USD.. Similar new laws have been introduced in the British Virgin Islands, Bermuda and other similar offshore . The Law defines a "non-high risk jurisdiction" as any jurisdiction that is not on the list of high risk jurisdictions issued by the Financial Action Task Force. The region faces high risks of human trafficking, including the highest risk in Afghanistan. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring. 8)Sub-Saharan Africa. This . United Arab Emirates (Dubai) List of tax jurisdictions at-risk 10. The AIFMD also requires that the third country is not listed as a 'Non-Cooperative Country and Territory' by the Financial Action Task Force (FATF). For the avoidance of doubt, the Cayman Islands is not on the FATF's list of "non-cooperative jurisdictions" or "high risk jurisdictions subject to a call for action", also known as the FATF. 21st June 2022 The FIAU would like to bring to your attention the latest FATF 'High-Risk Jurisdictions subject to a Call for Action' (previously known as 'Public Statement') and 'Jurisdictions under Increased Monitoring' (previously known as 'Improving global AML/CFT compliance: on-going process') documents issued by the FATF on 17 June 2022. The Cayman Islands remains a high-risk jurisdiction for money laundering. The FIAU would like to bring to your attention the latest FATF 'High-Risk Jurisdictions subject to a Call for Action' (previously known as 'Public Statement') and 'Jurisdictions under Increased Monitoring' (previously known as 'Improving global AML/CFT compliance: on-going process') documents issued by the FATF on 25 June 2021. The Cayman Islands will be included on the EU's list of 'high risk third countries' (the EU AML List) on 13 March 2022. On 10 January 2022, the Secretary General of the European Commission proposed in a draft Delegated Regulation (Proposed Directive) that the Cayman Islands, along with several other countries, be added to the European Union's (EU) annexure of high risk third countries with "strategic deficiencies" in its anti-money laundering and counter terrorist financing regime . Despite all the negative publicity it has received the last few years, due to the . (formally known as list of "non-cooperative jurisdictions and high-risk jurisdictions subject to a call for action") - though that would be surprising, given that the FATF blacklist currently includes only Iran and North Korea. Cayman Islands (UK) Medium: Chad: Very High: Chile: Medium: China: Medium: Christmas Island (AUS) Medium: . The Cayman Islands was included in the EU List. Myanmar : 7.83 4: Mozambique : 7.71 5: Cayman Islands : 7.66 6: Madagascar : 7.40 7: Mali : 7.37 8: . Cayman Islands Ghana Jamaica Mauritius Morocco Myanmar* Nicaragua* Pakistan Panama Senegal Syria* Uganda . Bahrain 10. Brunei, Canada, Cayman Islands, Chile, China, Cook Islands, . At its plenary session on 25 February 2021, the Financial Action Task Force (FATF) included the Cayman Islands as a jurisdiction being monitored for the active resolution of identified deficiencies in its regimes for the countering of anti-money laundering, terrorist financing and proliferation financing. . Japan, Switzerland or other non-high-risk jurisdiction (being any jurisdiction that is not on the high risk list issued by the Financial Action Task Force . Remaining on the list. The Commission has today issued amendments to the country lists in Appendix C and Appendix I of the Handbook on Countering Financial Crime and Terrorist Financing reflecting the Financial Action Task Force's updated list of jurisdictions under increased monitoring, which includes the Cayman Islands, Burkina Faso, Morocco and Senegal. This is an advisory notice regarding the risks posed by jurisdictions with unsatisfactory money laundering and terrorist financing controls. In its latest coronavirus health protocols, which went into effect on . An unfortunate by-product of this relaxed regulatory atmosphere is the significant money-laundering and greater financial crime concerns in the Cayman Islands; which has led to them being placed on FATF's Grey List and the European Union's High Risk Third Country list as a jurisdiction with significant strategic deficiencies in its anti . The Cayman Islands introduced an Economic Substance Law (the Law) effective from 1 January 2019 that will require an increased level of substance to be maintained in the Cayman Islands for all companies that fall within the new regime. The second worry is that the Cayman Islands may be included on one of the EU lists of non-cooperative jurisdictions . . High-risk jurisdictions have significant strategic deficiencies in their regimes to counter money laundering, terrorist financing, and financing of proliferation. It analyses the level of compliance with the FATF 40 Recommendations and the level of effectiveness of the AML/CFT system as well as recommends how the system could be strengthened. Failure to comply can lead to strict . High-risk jurisdictions have significant strategic deficiencies in their regimes to counter money laundering, terrorist financing, and financing of . This inclusion is a technicality which stems from the addition of the Cayman Islands to the Financial Action Task Force's (FATF) list of jurisdictions under increased monitoring in the area of AML/CFT/CPF (the All regulated businesses should be familiar with these jurisdictions, as working with them can affect your AML screening process. Barbados has added the Cayman Islands to its list of countries and jurisdictions considered to be high risk for COVID-19. . 7.2 This new list of countries reflects the list identified by the FATF in the 'high risk jurisdictions subject to a call for action' and 'jurisdictions under increased . Afghanistan, The Bahamas . Barbados. A private fund shall have its accounts audited annually by an auditor approved by CIMA. Third, the NRA 2021 seeks to update the Cayman Islands' national risk understanding in . The organisation said jurisdictions on this list were actively working with it to address 'strategic deficiencies' in their anti-money laundering and terrorist . Further details on the Valuation, Custody, Cash Monitoring and Identification of Securities requirements are set out below. The list was amended on 29 March 2022 by the Money Laundering and Terrorist Financing (Amendment) (High-Risk Countries) Regulations 2022. The Delegated Regulation amends the list of high-risk third countries that have provided a written high-level political commitment to address identified strategic AML/CTF deficiencies and have developed an action plan with the Financial Action Task Force (FATF) as follows: Newly added to the list. Other countries figuring in the 'high-risk jurisdiction' list are Bahamas, Bahrain, Bermuda, British Virgin Islands, Cayman, Channel Islands, Cook Islands, Guernsey, Indonesia, Isle of Man, Jersey, Kuwait, Liechtenstein, Malaysia, Oman, the Philippines, Russia, Saudi Arabia, Thailand, Trinidad and Tobago, and Turkey. 01 Apr 2019. Both within the EU and at the international level, the EU is working to promote and strengthen tax good governance mechanisms, fair taxation, and . High-risk and non-cooperative jurisdictions list. Registered private funds must have their financial statements audited annually by a local Cayman auditor approved by CIMA. The Cayman Islands will be included on the EU's list of 'high risk third countries' (the EU AML List) on 13 March 2022. Most outflows to tier 1 and 2 jurisdictions went to India, the Philippines and Nigeria. Albania. The Bill defines a "non-high risk . However, this list is no longer maintained by FATF, which instead maintains a list of 'High-risk and non-cooperative jurisdictions'. Lebanon 8. The Alternative Investment Fund Managers Directive (AIFMD) is a major piece of EU legislation which will introduce a common regulatory regime across the EU for alternative investment fund managers (AIFMs). The FATF blacklist (officially known as the "Call for action"), is the common shorthand description for the Financial Action Task Force (FATF) list of "Non-Cooperative Countries or Territories" (NCCTs). Futures trading involves the substantial risk of loss and is not suitable for all . This region has the second-highest overall risk score and is significantly below average across all categories. 1) High-risk jurisdictions on which enhanced due diligence and, where appropriate, counter-measures are imposed Since February 2020, in response to the COVID -19 pandemic, the FATF adopted a general pause in the review process of the high-risk jurisdictions on which enhanced due diligence and, where appropriate, counter -measures are imposed. Contact our experts. 1 Known as the VASP Law until a recent change amending the way in which Cayman Islands primary legislation is referred to. The Financial Action Task Force, or FATF, publishes a list of high-risk jurisdictions to enhance anti-money laundering policies and procedures. A copy of these  (the other being "high-risk jurisdictions subject to a call for action", a category that includes only Iran and North Korea). define the term "high risk jurisdiction." Countries with weak or insufficient AML/CFT measures present a clear ML/TF risk as do countries associated with high degrees of For all jurisdictions identified as high-risk, the FATF calls on all members and urges all jurisdictions to apply enhanced due diligence, and in the most serious cases, jurisdictions are called upon to apply counter-measures to protect the international financial system from the money laundering, terrorist financing, and . Faso, Cayman Islands, Morocco and Senegal are each newly defined as a "high-risk third country" as a result of these Regulations. Based on the three sources cited above - Global Forum, EU list and TJN Secrecy index - several countries can be indicated as being at-risk of non-compliance with the The EU list of non-cooperative jurisdictions for tax purposes. . Panama takes the first spot as the world's best offshore jurisdiction. This report provides a summary of the AML/CFT measures in place in the Cayman Islands as at the date of the on-site visit December 4-15, 2017. The Financial Crimes Enforcement Network ("FinCEN") issues circulars reminding US financial institutions to consider the risks associated with the jurisdictions listed in the circular, which in practice are aligned with the FATF Monitoring List, so it is anticipated that FinCEN will issue a circular including the Cayman Islands. The Cayman Islands should continue to work on implementing its action plan to address its strategic deficiencies, including by: (1) 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 in line with those requirements; and (2) demonstrating that they are prosecuting all types of money laundering cases in line with the jurisdiction's risk profile and that such . A non-high risk jurisdiction is defined as any jurisdiction that is not on the list of high risk jurisdictions issued by the Financial Action Task Force. The list added nine countries (Burkina Faso, Cayman Islands, Haiti, Jordan, Mali, Morocco, the Philippines, Senegal, and South Sudan), while five countries (Bahamas, Botswana, Ghana, Iraq and Mauritius) were removed. This is the major achievement of the EU list process. The list adopted by the Council on 24 February 2022 is composed of: The list becomes official upon publication in the Official Journal. On the basis of the results of the review by the International Co-operation Review Group (ICRG), the FATF identifies jurisdictions with strategic AML/CFT deficiencies in the following public documents that are issued three times a year: High-Risk Jurisdictions subject to a Call for Action and Jurisdictions under . 6 . Annual return Annex A: High-Risk Jurisdictions subject to a Call for Action - 21 February 2021. FATF High-Risk Jurisdictions 2022. For specific advice on the new registration requirements for Cayman closed-ended funds and compliance generally with the Private Funds Law, 2020, please contact your usual Loeb . the list of jurisdictions under increased monitoring in the area of anti-money laundering / countering terrorist and proliferation financing ("AML / CFT / CPF"). on 10 january 2022, the secretary general of the european commission proposed in a draft delegated regulation ( proposed directive) that the cayman islands, along with several other countries, be added to the european union's ( eu) annexure of high risk third countries with "strategic deficiencies" in its anti-money laundering and counter . Pleyer described these as two crucial issues and FATF expected higher risk countries such as the Cayman Islands, which is a major financial centre, to have "commensurate measures" in place against these risks. FATF describes "High-risk jurisdictions subject to a Call for Action" as having "significant strategic deficiencies in their regimes to counter money laundering, terrorist financing, and financing of proliferation. High-risk jurisdictions are defined as the 41 countries on the FATF list of high-risk and other monitored . LIST A: High Risk Jurisdiction List This list covers countries and territories that are to be treated as countries and territories that do not apply, or insufficiently apply, the FATF Recommendations.