The Cayman Islands Monetary Authority ('CIMA') has issued Notices under Regulation 53A of the Anti-Money Laundering (Amendment) Regulations, 2019 ('Regulations') that all persons currently registered as 'Excluded Persons' under the Cayman Islands ('Cayman') Securities Investment Business Law (2019 Revision)('SIBL') must file Anti-Money Laundering and Counter the Financing of Terrorism Reporting ('AML/CFT') Forms regardless of whether or not they wish to re-register pursuant to the transitional provisions in the Securities and Investment Business (Amendment) Law 2019 ('Amendment'). In a separate Notice dated 19 June 2019, the deadline for filing these forms was extended to 15 August 2019.
What forms need to be filed?
The forms are: AML/CFT Inherent Risk - Securities (Form AIR-157-75) and AML/CFT Risk Controls - Securities (Form ARC-158-75). Both forms may be found on the Regulatory Enhanced Electronic Forms Submission ('REEFS') portal. Completion guides for the Forms can be found here and any queries on the Forms sent to: firstname.lastname@example.org.
Why the timeframe?
Although the deadline has been extended, CIMA is encouraging all SIBL Excluded Persons to file the forms as soon as practicable. A separate Industry Advisory from the Cayman Ministry of Finance explains that this will enable CIMA to assess the money laundering / terrorist financing risks associated with the current operations of those registered under SIBL and as required by the Caribbean Financial Action Task Force ('CFATF') standard.
What is securities investment business?
Securities Investment Business is defined in SIBL through a list of activities carried out by certain types of entity. Generally, Cayman Companies and partnerships, and registered foreign companies, which deal in shares or partnerships interests or units of a unit trust arrange such deals, manage or advise on such shares, interest or units or manage, market or act as a depository for EU Connected Funds will most likely be carrying on securities investment business.
Who are SIBL Excluded Persons?
Section 5(2) ('Requirement for a licence') of SIBL sets out that persons specified in Schedule 4 of SIBL do not require a licence to conduct securities investment business, although they may if they choose apply to be licensed under SIBL. The Amendment replaces Schedule 4 with a new definition but that does not affect the requirement to complete the AML/CFT Forms by 15 August 2019.
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