GUIDANCE NOTES ON THE PREVENTION AND DETECTION OF MONEY LAUNDERING, TERRORIST FINANCING AND PROLIFERATION FINANCING - February 2024 - Issued by the Cayman Islands Monetary Authority

Sep 18, 2026

Guidance Notes (February 2024) set minimum requirements and general guidance for Financial Service Providers in the Cayman Islands to prevent and detect money laundering (ML), terrorist financing (TF), and proliferation financing (PF). The notes emphasize compatibility with international AML/CFT standards, reference relevant Cayman Islands legislation under the Monetary Authority Act and Anti-Money Laundering Regulations, and explain supervisory enforcement expectations. Content is framed to support integrity of the financial sector and practical implementation through risk-based approaches, compliance programmes, due diligence, and ongoing controls.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages245

Reading Time10 h 17 min

AccessFree to download

FOREWORD

PART I - SCOPE AND GENERAL MATTERS

CAYMAN ISLANDS LEGISLATIVE AND REGULATORY FRAMEWORK

PART II - GENERAL MATTERS

COMPLIANCE PROGRAMME, SYSTEMS AND TRAINING OBLIGATIONS

ASSESSING RISK AND APPLYING A RISK BASED APPROACH

CUSTOMER DUE DILIGENCE

SIMPLIFIED DUE DILIGENCE MEASURES

ENHANCED CDD MEASURES (EDD)

POLITICALLY EXPOSED PERSONS

RECORD-KEEPING PROCEDURES

MONEY LAUNDERING REPORTING OFFICER

OTHER INTERNAL CONTROLS

IDENTIFICATION AND RECORD-KEEPING REQUIREMENTS RELATING TO WIRE TRANSFERS

CORRESPONDENT BANKS

SANCTIONS COMPLIANCE

COUNTER PROLIFERATION FINANCING

TARGETED FINANCIAL SANCTIONS

ONGOING MONITORING

PART III - SECTOR SPECIFIC GUIDANCE

Guidance Notes on the Prevention and Detection of Money Laundering, Terrorist Financing and Proliferation Financing in the Cayman Islands February 2024 GUIDANCE NOTES ON THE PREVENTION AND DETECTION OF MONEY LAUNDERING, TERRORIST FINANCING AND PROLIFERATION FINANCING IN THE CAYMAN ISLANDS Issued by the Cayman Islands Monetary Authority Pursuant to section 34 of the Monetary Authority Act (2020 Revision) (as amended) [February 2024] These Guidance Notes replace the Guidance Notes on the Prevention and Detection of Money Laundering, Terrorist Financing and Proliferation Financing issued on 5 June 2020 (the “GNs of 5 June 2020”); and related amendments. This document is intended to establish the minimum requirements in addition to providing general guidance to Financial Service Providers (“FSPs”) . It should therefore, not be relied upon as a source of law. Reference for that purpose should be made to the appropriate statutory provisions. However, FSPs should be aware of the enforcement powers of the Supervisory Authorities under the Anti-Money Laundering Regulations (2020 Revision) (as amended) (“AMLRs”) as they relate to supervisory or regulatory guidance. Contact: Cayman Islands Monetary Authority SIX, Cricket Square P.O. Box 10052 Grand Cayman KY1-1001 Cayman Islands Tel:345-949-7089 [Website: www.cima.ky](Website: www.cima.ky) Fax: 345-945-6131 Email: [ContactAMLCFT@cima.ky](ContactAMLCFT@cima.ky) FOREWORD The Cayman Islands, being one of the leading international financial centres, has framed its regulatory system around international standards of supervision and co-operation with overseas regulatory authorities in the fight against financial crime. The Islands seek to maintain their position as a premier jurisdiction, while at the same time ensuring that their institutions can operate in a competitive manner. The Cayman Islands Monetary Authority (“Monetary Authority”) is particularly aware of the global nature of the fight against money laundering, terrorist financing and other financial crime, and the consequent need for all jurisdictions to operate their Anti-Money Laundering and Countering the Financing of Terrorism (“AML/CFT”) and regulatory regimes co-operatively and compatibly with each other. This is both to limit opportunities for "regulatory arbitrage"by criminals and to promote an internationally level playing field for legitimate businesses. These Guidance Notes establish the requirements and provide guidelines that should be adopted by FSPs in order to maintain the integrity of the Cayman Islands’ financial sector in respect of preventing and combating money laundering (“ML”), terrorist financing (“TF”) and proliferation financing (“PF”) The Guidance Notes are based on the AML/CFT legislation of the Cayman Islands and reflect, so far as applicable, the 40 Recommendations and guidance papers issued by the Financial Action Task Force (“FATF”) . The Monetary Authority stands ready to discuss individual cases with FSPs to assist in the practical implementation of these Guidance Notes. We hope that you find the enclosed content of assistance. Cindy Scotland Managing Director FOREWORD ............................................................................................................ 3 PART I .................................................................................................................... 7 SCOPE AND GENERAL MATTERS .............................................................................. 8 CAYMAN ISLANDS LEGISLATIVE AND REGULATORY FRAMEWORK .........................17 PART II .................................................................................................................21 GENERAL MATTERS ................................................................................................22 COMPLIANCE PROGRAMME, SYSTEMS AND TRAINING OBLIGATIONS ....................23 ASSESSING RISK AND APPLYING A RISK BAS

FAQs

What does the February 2024 Guidance Notes establish for Financial Service Providers in the Cayman Islands?

They establish minimum requirements, plus general guidance, for Financial Service Providers to prevent and detect money laundering, terrorist financing, and proliferation financing.

Does the document function as a source of law?

No. The Guidance Notes provide requirements and general guidance and should not be relied on as a source of law; relevant statutory provisions should be consulted.

On what international and local frameworks are the Guidance Notes based?

The notes are based on Cayman Islands AML/CFT legislation and reflect, where applicable, the FATF’s 40 Recommendations and related guidance papers.

Sep 18, 2026

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