The AML Regulations apply to regulated funds registered with CIMA as well as unregulated investment entities such as private equity or closed-ended funds and structured finance vehicles that are not registered with CIMA. CIMA also provided a deadline of 30 September 2018 for the appointment of an AMLCO, MLRO and DMLRO for both registered and unregistered Cayman Islands investment entities in existence prior to 1 June 2018. From 1 June 2018, new entities must be able to immediately demonstrate compliance with this requirement. Registered funds will need to designate the AMLCO, MLRO and DMLRO via the REEFS portal. CIMA has no current plans for REEFS filings by unregistered investment entities. However, such entities may have to otherwise demonstrate their AMLCO, MLRO and DMLRO appointments and compliance with the AML Regulations in due course.
The AMLCO is required to have AML oversight of an investment entity’s activities, going beyond investor related AML issues and compliance. The designated individual will be required to take measures to develop and maintain systems and controls, regularly reporting to and advising the Board of issues that should be addressed and liaising with and responding to requests from relevant regulatory bodies and authorities. The MLRO and DMLRO will serve as the key points of contact for all suspicious activity reports and will be responsible for reporting suspicious activity to the appropriate authorities.
The same person can act as the AMLCO and either the MLRO or DMLRO. The MLRO and DMLRO must be separate persons. All persons appointed must have adequate and appropriate knowledge and expertise to perform the function and should demonstrate autonomy in their ability to carry out their designated function.
As a market leader in the provision of specialised fiduciary, fund and regulatory compliance services, MaplesFS is uniquely positioned to provide an offering designed to ensure compliance with all relevant regulatory requirements.
MaplesFS offers a risk-based, cost effective solution that can be tailored to individual requirements. This may include:
- the provision of natural persons as the AMLCO, MLRO and DMLRO;
- management of the suspicious activity reporting process;
- acting as an ongoing liaison with local regulators, competent authorities or other regulatory or investigative agencies;
- delivery of AML training; and
- the provision of an annual AML inspection that is designed to test and evaluate an internal AML programme and related controls.
This approach is supported by a team of experienced professionals with a deep knowledge of Cayman Islands regulations and a robust yet flexible technological infrastructure. In addition, MaplesFS leverages its affiliation with international law firm, Maples and Calder, to provide professional and timely advice that draws upon jurisdictional knowledge and experience. For further information, please refer to Maples and Calder’s update: Increasing Clarity on Cayman Islands AML Obligations.