Registrar Speaks to NPOs on AML/CFT Risks

The Registrar for NPOs (non-profit organisations) addressed dozens of charitable organisations on their money laundering, terrorist financing, targeted financial sanctions and proliferation financing risks at an information session on Thursday, 5 September at the Government Administration Building.

Last Thursday’s meeting also featured presentations from other Government agencies, namely the Anti-Money Laundering Steering Group, the Financial Reporting Authority and the Financial Crime Investigations Unit within the Royal Cayman Islands Police Service.

‘Based on their unique purposes and activities, these NPOs were invited in for this targeted outreach session to educate them on these risks’, said Paul Inniss, the Head of Compliance at General Registry.

‘This session will help these NPOs to fulfil their administrative duties in compliance with local laws and global standards for anti-money laundering, countering the financing of terrorism, targeted financial sanctions and proliferation financing’, he said.

Mr Inniss facilitated the session, alongside Ben Evans of Financial Transparency Advisors (FTA). The Ministry of Financial Services has contracted FTA to assist with Cayman’s preparations for the 2020 CFATF (Caribbean Financial Action Task Force) review of Cayman’s anti-money laundering and counter terrorist financing regime.

Government is working to address the Caribbean Financial Action Task Force (CFATF)’s March 2019 assessment of Cayman’s AML/CFT regime. The report outlines certain recommended actions to be taken by the Cayman Islands to strengthen the AML/CFT regime. The jurisdiction is under a one-year “Observation Period” by the FATF, ending February 2020, in which it is expected to correct strategic AML/CFT deficiencies. The FATF will review the progress made by the Cayman Islands and, at its June 2020 Plenary, determine if the recommended actions have been taken.

As of 1 September, there were more than 450 churches, sports clubs, philanthropic organisations and community groups registered with Government. These entities, more typically referred to as charities, fall within the scope of the Non-Profit Organisations Law, 2017. The law was enacted in accordance with international standards to strengthen the Cayman Islands’ regime to counter money laundering and terrorist financing.