Intertrust provides Cayman AML officers

Existing Cayman domiciled funds and structured finance vehicles, private trust companies or entities that are otherwise investing, administering or managing funds or money on behalf of other persons are required to appoint named individuals to the roles of Money Laundering Reporting Officer (MLRO), Deputy Money Laundering Reporting Officer (DMLRO) and AML Compliance Officer (AMLCO) and implement AML policies and procedures by 30 September 2018. From 1 June 2018, any new Cayman entities must be able to immediately demonstrate compliance with these requirements.

What is the risk of non-compliance?

Your business is liable, on summary conviction, to a fine of up to KYD 500,000 or, on indictable conviction, to an unlimited fine and imprisonment of named individuals for two years.

How we can help?

We provide the senior, experienced, independent AML professionals you need to fulfill the roles of AMLCO, MLRO and DMLRO. Although the guidance suggests a need to identify three individuals, the role of AMLCO can be combined with either the MLRO or DMLRO role and most financial services providers are expected to appoint two officers to hold a combination of all three roles.

For details of our service offering, click here.

What are CIMA’s expectations of entities which outsource these roles?

1. Substantiation that the named individuals on whom reliance is being placed possess adequate and appropriate knowledge and expertise to perform the functions
2. Conduct a risk assessment before entering into an agreement
3. Prepare an AML agreement setting out the responsibilities of each party
4. Review policies and procedures and test them from time to time
5. Where the provider operates from a country outside the Cayman Islands, ensure they adopt the Cayman Islands standards in relation to the performance of the function, where the relevant standards are lower when compared to the Cayman Islands

If you have any questions regarding this briefing, don’t hesitate to get in touch with your usual Intertrust relationship contact.