Key takeaways
- Businesses must be aware of the three core money laundering offences: concealing, arranging and acquiring (use and possession) criminal property.
- The FRA has issued a seven-day working period to consider all defence against money laundering (DAML) requests and grant consent.
- When submitting a SAR, businesses must clearly indicate if they are specifically requesting a DAML to ensure proper handling by the FRA.
Everything you need to know about the recent developments in respect of the Proceeds of Crime Act in the Cayman Islands.
Our conversation with the FRA on the updates to the Cayman Islands' Proceeds of Crime Act (POCA) brought together our Regulatory experts, Colm Dawson and Ian Mason, along with RJ Berry, OBE, Director of the Cayman Islands Financial Reporting Authority (FRA). The discussion explored the significant updates to the Suspicious Activity Reporting (SAR) process in the Cayman Islands.
Here's what you need to know from the webinar and share actionable strategies for businesses to navigate these significant changes to POCA, ensuring compliance and managing risk effectively.
1. Core Money laundering offences: Businesses must be aware of the three core money laundering offences: concealing, arranging and acquiring (use and possession) criminal property. A complete understanding of these offences is vital for businesses to effectively manage potential risks and ensure compliance with anti-money laundering (AML) regulations.
2. Changes to SAR Defence and Consent Requirements: As of 2 January 2025, filing a SAR will no longer be sufficient to provide a defence, businesses will now need a consent from the FRA in addition to the SAR.
3. Deemed Consent Regime : Where no objection to the filed defence against money laundering is received within a seven working day period the proposed transaction or action can proceed. Where there is a refusal a 30 calendar day moratorium must be observed.
How can we help?
Our team of regulatory experts is well-positioned to assist businesses in navigating these significant changes to POCA. We offer extensive experience in AML compliance and understand the practical impact of POCA on your operations. Here's how we can support you:
- SAR assistance: We can advise on whether you need to submit a SAR and if so, assist with reviewing and drafting the necessary documents.
- DAML and consent guidance: We can assist with any drafting of the DAML that may be required. If a DAML or consent is refused, we'll guide you on the next steps.
- AML training: We offer tailored training to ensure your team meets legislative requirements and is well-versed in the latest AML developments including the recent changes to POCA.
- Terms of service documents: We can suggest amendments to your term of services documents to account for the updated timeline of transaction, helping to manage counterparty or client expectations.
With our in-depth knowledge and hands-on approach, Walkers is here to help you navigate these regulatory changes and ensure your business remains compliant and prepared for the future. To dive deeper into the discussion, be sure to check out the full webinar video for more insights and expert guidance.
If you didn't get to join us for the full webinar, catch up on the full discussion, here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
